Alpha Metallurgical Resources Inc (AMR)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 187,579 | 721,956 | 1,448,540 | 288,790 | -241,470 |
| Total stockholders’ equity | US$ in thousands | 1,649,500 | 1,573,930 | 1,429,760 | 546,909 | 200,102 |
| ROE | 11.37% | 45.87% | 101.31% | 52.80% | -120.67% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $187,579K ÷ $1,649,500K
= 11.37%
Alpha Metallurgical Resources Inc's return on equity (ROE) has shown significant fluctuations over the years based on the provided data.
As of December 31, 2020, the ROE was exceptionally low at -120.67%, indicating that the company was experiencing a substantial loss relative to its equity.
However, by December 31, 2021, the ROE had improved dramatically to 52.80%, suggesting that the company had managed to generate a positive return on its equity investment.
In 2022, the ROE surged to 101.31%, indicating a significant increase in profitability and efficient utilization of shareholder funds.
Despite this strong performance, the ROE dropped to 45.87% by December 31, 2023, but still remained above the industry average, reflecting the company's ability to generate profits from shareholders' equity.
By December 31, 2024, the ROE decreased further to 11.37%, indicating a decline in profitability compared to the previous year, which may necessitate a closer examination of the company's financial performance and management strategies.
In conclusion, while Alpha Metallurgical Resources Inc experienced fluctuations in its ROE over the years, it is crucial for investors and stakeholders to assess the company's operational efficiency and financial health to understand the factors driving these changes in return on equity.
Peer comparison
Dec 31, 2024