Alpha Metallurgical Resources Inc (AMR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.37% | 27.94% | 41.17% | 20.17% | -0.98% |
| Operating profit margin | 7.70% | 24.86% | 38.54% | 15.81% | -6.64% |
| Pretax margin | 7.13% | 24.35% | 37.91% | 12.86% | -17.20% |
| Net profit margin | 6.34% | 20.80% | 35.32% | 12.79% | -17.05% |
Alpha Metallurgical Resources Inc has shown a significant improvement in its profitability ratios over the years, based on the provided data.
1. Gross Profit Margin: The company experienced a negative gross profit margin of -0.98% in December 2020, indicating that it incurred losses on its core operations. However, there was a substantial improvement in December 2021, with a gross profit margin of 20.17%, which further increased to 41.17% by December 2022. The margin then decreased to 27.94% in December 2023 and further to 10.37% in December 2024. Overall, the trend shows an initial recovery followed by fluctuations.
2. Operating Profit Margin: Similarly, the operating profit margin was negative at -6.64% in December 2020, but it improved to 15.81% in December 2021 and further to 38.54% in December 2022. However, there was a decline in December 2023 to 24.86% and to 7.70% in December 2024. This indicates a fluctuating trend in operating profitability despite overall improvements.
3. Pretax Margin: The pretax margin also exhibited a positive shift, with a significant improvement from -17.20% in December 2020 to 37.91% in December 2022. However, there was a slight decline to 24.35% in December 2023 and further down to 7.13% in December 2024. This suggests fluctuations in the company's ability to generate profits before taxes.
4. Net Profit Margin: The net profit margin showed a similar pattern of improvement, with the company moving from a negative margin of -17.05% in December 2020 to a positive margin of 35.32% in December 2022. However, the margin decreased to 20.80% in December 2023 and further to 6.34% in December 2024. This indicates that the company's bottom line was impacted by various factors leading to fluctuations in profitability.
In conclusion, Alpha Metallurgical Resources Inc has demonstrated improvements in its profitability ratios over the years, but the data also reflects certain fluctuations in profitability, suggesting that the company may be facing challenges in sustaining its profitability levels consistently.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.34% | 35.87% | 68.36% | 19.22% | -5.59% |
| Return on assets (ROA) | 7.69% | 30.01% | 62.64% | 15.55% | -14.37% |
| Return on total capital | 13.01% | 54.16% | 110.27% | 66.16% | -84.51% |
| Return on equity (ROE) | 11.37% | 45.87% | 101.31% | 52.80% | -120.67% |
Alpha Metallurgical Resources Inc's profitability ratios have shown significant improvement over the years.
1. Operating return on assets (Operating ROA) has increased from -5.59% in 2020 to a peak of 68.36% in 2022, indicating management's ability to generate operating profits from its assets. However, there was a slight decline to 35.87% in 2023 and further to 9.34% in 2024.
2. Return on assets (ROA) has also shown a positive trend, moving from -14.37% in 2020 to a high of 62.64% in 2022. There was a slight drop to 30.01% in 2023 and further to 7.69% in 2024.
3. Return on total capital has improved significantly over the years, rising from -84.51% in 2020 to a peak of 110.27% in 2022. However, it decreased to 54.16% in 2023 and further to 13.01% in 2024.
4. Return on equity (ROE) has also shown a positive trajectory, increasing from -120.67% in 2020 to a high of 101.31% in 2022. There was a slight decrease to 45.87% in 2023 and further to 11.37% in 2024.
Overall, Alpha Metallurgical Resources Inc has demonstrated improving profitability ratios, reflecting effective management of assets, capital, and equity to generate returns for shareholders. It is essential for the company to sustain this positive trend to ensure long-term financial health and growth.