Alpha Metallurgical Resources Inc (AMR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 481,578 | 268,207 | 301,906 | 81,211 | 139,227 |
| Short-term investments | US$ in thousands | — | 0 | 46,052 | 0 | 47 |
| Total current liabilities | US$ in thousands | 251,109 | 309,930 | 402,625 | 295,929 | 259,054 |
| Cash ratio | 1.92 | 0.87 | 0.86 | 0.27 | 0.54 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($481,578K
+ $—K)
÷ $251,109K
= 1.92
Alpha Metallurgical Resources Inc's cash ratio has shown some fluctuations over the past five years. The ratio was 0.54 as of December 31, 2020, indicating that the company had $0.54 in cash and cash equivalents for every dollar of current liabilities.
However, the ratio decreased to 0.27 by December 31, 2021, suggesting a lower liquidity level compared to the previous year. This could indicate a potential liquidity strain or a change in the company's cash management practices.
The cash ratio significantly improved in the following years, reaching 0.86 by December 31, 2022, and further increasing to 0.87 by December 31, 2023. These improvements suggest that Alpha Metallurgical Resources Inc was able to enhance its liquidity position, potentially by increasing its cash reserves or effectively managing its current liabilities.
By December 31, 2024, the cash ratio substantially improved to 1.92, indicating a significant increase in the company's liquidity. This may signal a stronger financial position, potentially allowing the company to meet its short-term obligations more comfortably.
Overall, the trend in Alpha Metallurgical Resources Inc's cash ratio shows variability but ultimately an improvement in liquidity over the five-year period, with the latest ratio of 1.92 indicating a more robust cash position relative to its current liabilities. Further analysis would be needed to understand the specific factors driving these changes and their implications for the company's financial health.
Peer comparison
Dec 31, 2024