Alpha Metallurgical Resources Inc (AMR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 863,085 | 1,580,880 | 359,200 | -170,688 | -169,103 |
| Total assets | US$ in thousands | 2,406,060 | 2,312,480 | 1,857,710 | 1,680,090 | 2,302,820 |
| Operating ROA | 35.87% | 68.36% | 19.34% | -10.16% | -7.34% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $863,085K ÷ $2,406,060K
= 35.87%
Alpha Metallurgical Resources Inc's operating return on assets (operating ROA) has fluctuated over the past four years. In 2023, the operating ROA stands at 36.89%, a decrease from the previous year's rate of 69.92%. Despite the decline, the company's performance still reflects a strong ability to generate operating profit relative to its assets. Comparing to 2021, where the operating ROA was 21.08%, the recent figure indicates an improvement in operational efficiency.
However, looking back to 2020, the company recorded a negative operating ROA of -5.82%, indicating that the company was not effectively utilizing its assets to generate operating income. The significant turnaround from negative territory to positive figures in subsequent years suggests that Alpha Metallurgical Resources Inc has made operational improvements and is now performing more efficiently.
Overall, the trend in operating ROA shows a positive trajectory, indicating that Alpha Metallurgical Resources Inc has been successful in enhancing its operational performance and maximizing returns from its assets in recent years. Further monitoring of this ratio will be beneficial to evaluate the company's ongoing operational efficiency and performance.
Peer comparison
Dec 31, 2023