Alpha Metallurgical Resources Inc (AMR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 721,956 | 1,448,540 | 288,790 | -446,899 | -316,319 |
| Total assets | US$ in thousands | 2,406,060 | 2,312,480 | 1,857,710 | 1,680,090 | 2,302,820 |
| ROA | 30.01% | 62.64% | 15.55% | -26.60% | -13.74% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $721,956K ÷ $2,406,060K
= 30.01%
Alpha Metallurgical Resources Inc's return on assets (ROA) has fluctuated significantly over the past four years. In 2023, the ROA stood at 30.01%, showing a decrease from 62.64% in 2022. However, the ROA in 2023 remains positive, indicating that the company is generating a profit from its assets.
The significant decline in ROA from 2022 to 2023 suggests that the company may be experiencing challenges in efficiently utilizing its assets to generate profits. It is essential for Alpha Metallurgical Resources Inc to closely examine its asset management strategies to improve its ROA and ensure sustainable profitability.
Looking back to 2021, Alpha Metallurgical Resources Inc's ROA was 15.55%, which indicates a moderate return on its assets compared to 2023. In contrast, the company faced a negative ROA of -26.60% in 2020, indicating that it incurred losses from its asset base in that year.
Overall, the trend in Alpha Metallurgical Resources Inc's ROA highlights the importance of effective asset utilization and management in maximizing profitability. The company should focus on implementing strategies to enhance ROA and drive sustainable business performance in the future.
Peer comparison
Dec 31, 2023