Alpha Metallurgical Resources Inc (AMR)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 227,854 | 863,085 | 1,580,880 | 357,140 | -93,978 |
| Total assets | US$ in thousands | 2,438,710 | 2,406,060 | 2,312,480 | 1,857,710 | 1,680,090 |
| Operating ROA | 9.34% | 35.87% | 68.36% | 19.22% | -5.59% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $227,854K ÷ $2,438,710K
= 9.34%
Alpha Metallurgical Resources Inc's operating return on assets (operating ROA) has exhibited significant fluctuations over the past five years. The metric stood at -5.59% as of December 31, 2020, indicating a negative return on assets, which may raise concerns about the company's operational efficiency and profitability.
However, there was a notable recovery in the following years, with operating ROA increasing to 19.22% by the end of 2021. This suggests that the company may have implemented strategies to improve its asset utilization and generate higher operating profits relative to its assets.
The trend continued to be positive in 2022, as the operating ROA surged to 68.36%, indicating a substantial improvement in the company's operational performance and profitability. This remarkable increase could be attributed to enhanced efficiency in utilizing its assets to generate income.
In 2023, Alpha Metallurgical Resources Inc's operating ROA remained relatively high at 35.87%, reflecting sustained operational success and effective management of assets to drive profitability.
By the end of 2024, the operating ROA declined to 9.34%, indicating a decrease in the company's operational efficiency and profitability compared to the previous year. This reduction may raise questions about the company's ability to maintain its strong operational performance in the face of changing market conditions or internal challenges.
Overall, Alpha Metallurgical Resources Inc's operating ROA trend suggests a mix of performance fluctuations and improvements over the five-year period, emphasizing the importance of vigilance in monitoring and managing operational efficiency to sustain profitability in the long term.
Peer comparison
Dec 31, 2024