Alpha Metallurgical Resources Inc (AMR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,048,300 | 1,114,420 | 747,986 | 510,135 | 711,479 |
| Total current liabilities | US$ in thousands | 309,930 | 402,625 | 295,929 | 259,054 | 315,152 |
| Current ratio | 3.38 | 2.77 | 2.53 | 1.97 | 2.26 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,048,300K ÷ $309,930K
= 3.38
The current ratio of Alpha Metallurgical Resources Inc has shown an increasing trend over the past four years, indicating a strengthening liquidity position. The current ratio has improved from 1.97 in 2020 to 3.38 in 2023. This signifies that the company's current assets are 3.38 times its current liabilities, demonstrating its ability to cover short-term obligations comfortably.
An increasing current ratio is a positive indicator as it suggests that the company has ample short-term assets to meet its short-term obligations. It may reflect efficient working capital management, improved liquidity, or a reduction in short-term debt levels.
However, while a higher current ratio generally implies a stronger liquidity position, excessively high current ratios may also indicate inefficiency in asset utilization. Therefore, it is essential for Alpha Metallurgical Resources Inc to strike a balance and ensure that its current assets are effectively deployed to generate returns while maintaining a healthy liquidity cushion.
Peer comparison
Dec 31, 2023