Alpha Metallurgical Resources Inc (AMR)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Current ratio 4.13 3.59 3.55 3.15 3.38 3.33 3.65 3.45 2.77 3.36 3.21 2.81 2.53 1.95 1.72 1.81 1.97 2.01 2.36 2.64
Quick ratio 1.92 1.19 1.09 0.79 0.87 0.96 1.08 0.72 0.86 1.18 0.47 0.44 0.27 0.27 0.23 0.32 0.54 0.55 0.82 0.75
Cash ratio 1.92 1.19 1.09 0.79 0.87 0.96 1.08 0.72 0.86 1.18 0.47 0.44 0.27 0.27 0.23 0.32 0.54 0.55 0.82 0.75

The liquidity ratios of Alpha Metallurgical Resources Inc show a positive trend over the observed period. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, increased consistently from 2.64 on March 31, 2020, to 4.13 on December 31, 2024. This indicates a strengthening of the company's liquidity position.

Similarly, the quick ratio, also known as the acid-test ratio, reflects the firm's ability to pay off its current liabilities without relying on the sale of inventory. It improved from 0.75 on March 31, 2020, to 1.92 on December 31, 2024, showing an increasing ability to meet short-term obligations with liquid assets.

The cash ratio, which is the most conservative liquidity measure as it considers only the most liquid assets like cash and cash equivalents, followed a similar upward trend from 0.75 on March 31, 2020, to 1.92 on December 31, 2024. This indicates that Alpha Metallurgical Resources Inc has been able to build up its cash reserves over the years.

Overall, the liquidity ratios of Alpha Metallurgical Resources Inc demonstrate a consistent improvement in its ability to meet short-term obligations and maintain a healthy liquidity position throughout the analyzed period.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cash conversion cycle days 23.31 26.26 29.64 34.09 33.67 41.96 41.98 40.65 30.34 27.53 26.57 29.34 26.19 28.87 35.64 25.85 24.49 25.18 27.34 33.06

The cash conversion cycle (CCC) of Alpha Metallurgical Resources Inc has fluctuated over the years based on the provided data. The CCC is a measure of the company's efficiency in managing its working capital, specifically how long it takes to convert its investments in inventory and other resources back into cash flow from sales.

From March 31, 2020, to December 31, 2024, the CCC ranged from a low of 23.31 days to a high of 41.98 days. A shorter CCC indicates that the company is more efficient in managing its working capital, while a longer CCC suggests inefficiencies in the company's operations.

During the period analyzed, the CCC trended downwards initially, reaching a low of 23.31 days by December 31, 2024, indicating improved efficiency in managing working capital over time. However, there was a slight increase in CCC towards the end of the period, with the CCC increasing to 34.09 days by March 31, 2024, before decreasing again to 23.31 days by December 31, 2024.

Overall, Alpha Metallurgical Resources Inc showed varying levels of efficiency in converting its investments in inventory and other resources back into cash flow from sales over the period analyzed, with fluctuations in the CCC that may signify changes in operational efficiency or working capital management strategies. The company should continue to monitor and optimize its cash conversion cycle to ensure effective management of working capital and overall financial health.