Alpha Metallurgical Resources Inc (AMR)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Net income (ttm) US$ in thousands 187,579 365,724 455,734 578,180 721,956 766,620 925,623 1,318,425 1,448,545 1,485,310 1,315,757 722,609 288,790 -68,808 -220,709 -440,019 -446,899 -487,687 -487,582 -362,942
Total stockholders’ equity US$ in thousands 1,649,500 1,650,630 1,643,570 1,591,140 1,573,930 1,558,070 1,566,730 1,548,580 1,429,760 1,371,670 1,319,570 929,847 546,909 248,097 162,331 170,161 200,102 342,968 409,415 653,835
ROE 11.37% 22.16% 27.73% 36.34% 45.87% 49.20% 59.08% 85.14% 101.31% 108.28% 99.71% 77.71% 52.80% -27.73% -135.96% -258.59% -223.34% -142.20% -119.09% -55.51%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $187,579K ÷ $1,649,500K
= 11.37%

Alpha Metallurgical Resources Inc's return on equity (ROE) experienced a significant negative trend from March 2020 to December 2021, with ROE consistently in the negative range, indicating the company was not generating satisfactory returns relative to its equity during this period.

However, there was a notable turnaround starting in March 2022, with ROE sharply rising to positive levels. This positive trend continued throughout 2022 and into the first half of 2024, demonstrating improvement in the company's ability to generate profits from its equity.

By the end of December 2024, Alpha Metallurgical Resources Inc's ROE had moderated to 11.37%, which still reflects a positive return on equity, although at a lower level compared to the peak in mid-2022.

Overall, the company has made significant progress in enhancing its profitability relative to equity, transitioning from extended periods of negative ROE to achieving positive returns in recent quarters, signaling improved efficiency and profitability in utilizing shareholder funds.


Peer comparison

Dec 31, 2024

Company name
Symbol
ROE
Alpha Metallurgical Resources Inc
AMR
11.37%
Peabody Energy Corp
BTU
10.00%