Alpha Metallurgical Resources Inc (AMR)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 2.26 | 2.33 | 2.64 |
| Quick ratio | 2.51 | 2.31 | 2.52 | 2.43 | 1.88 | 2.66 | 2.59 | 2.20 | 1.94 | 1.41 | 0.90 | 1.06 | 1.40 | 1.17 | 1.45 | 1.56 | 1.59 | 1.25 | 1.62 |
| Cash ratio | 0.87 | 0.94 | 1.06 | 0.70 | 0.86 | 1.18 | 0.47 | 0.44 | 0.27 | 0.27 | 0.23 | 0.32 | 0.54 | 0.55 | 0.82 | 0.75 | 0.68 | 0.46 | 0.76 |
Alpha Metallurgical Resources Inc has shown consistent improvement in its liquidity position over the past eight quarters, as indicated by the current, quick, and cash ratios. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has steadily increased from 2.77 in Q4 2022 to 3.38 in Q4 2023. This indicates that the company has been able to enhance its liquidity position by increasing its current assets relative to its current liabilities.
Similarly, the quick ratio has shown an upward trend, reflecting the company's ability to meet its short-term obligations with its most liquid assets. The quick ratio has increased from 2.21 in Q4 2022 to 2.64 in Q4 2023, which suggests that Alpha Metallurgical Resources Inc has a stronger liquidity position without relying heavily on inventory to meet short-term obligations.
Furthermore, the cash ratio, which provides a more stringent measure of liquidity by considering only cash and cash equivalents, has fluctuated but generally improved over the quarters. It rose from 1.20 in Q4 2022 to 0.99 in Q4 2023. This indicates that the company has become more efficient in managing its cash resources to cover short-term liabilities.
Overall, the improving trend in the liquidity ratios of Alpha Metallurgical Resources Inc suggests that the company is in a better position to meet its short-term obligations and has enhanced its ability to withstand financial challenges in the near future.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 69.04 | 69.36 | 69.66 | 71.13 | 49.36 | 55.42 | 78.52 | 87.68 | 87.28 | 79.47 | 66.68 | 58.72 | 69.51 | 52.60 | 53.79 | 72.86 | 82.34 | 82.36 | 233.76 |
Alpha Metallurgical Resources Inc's cash conversion cycle has shown fluctuations over the past eight quarters. In Q1 2022, the cash conversion cycle was at its highest point of 88.98 days, indicating that it took the company close to three months to convert its investments in raw materials into cash from sales. This was followed by a decrease in the cash conversion cycle in Q2 2022 to 78.97 days, suggesting an improvement in the company's efficiency in managing its working capital.
However, during Q3 2022 and Q4 2022, the cash conversion cycle continued to decrease significantly, reaching 55.90 days and 51.33 days, respectively. This downward trend indicated that Alpha Metallurgical Resources Inc was able to convert its resources into cash at a faster pace, possibly due to more efficient inventory management or quicker collection of receivables.
In Q1 2023, the cash conversion cycle increased to 73.74 days, which might be a result of increased inventory holdings or longer payment terms with suppliers. This trend continued in Q2 and Q3 2023, with the cash conversion cycle further increasing to 72.45 days and 71.86 days, respectively. This indicated a potential slowdown in the company's cash conversion efficiency.
However, in Q4 2023, there was a slight improvement in the cash conversion cycle to 69.47 days, suggesting that Alpha Metallurgical Resources Inc may have implemented strategies to enhance its working capital management.
Overall, fluctuations in the cash conversion cycle can be influenced by various factors such as inventory management, accounts receivable and payable policies, and overall operational efficiency. It is essential for the company to closely monitor and manage its cash conversion cycle to ensure optimal working capital management and liquidity.