Alpha Metallurgical Resources Inc (AMR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 214,561 | 852,382 | 1,576,550 | 361,852 | -169,106 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,649,500 | 1,573,930 | 1,429,760 | 546,909 | 200,102 |
| Return on total capital | 13.01% | 54.16% | 110.27% | 66.16% | -84.51% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $214,561K ÷ ($—K + $1,649,500K)
= 13.01%
Alpha Metallurgical Resources Inc's return on total capital has experienced significant fluctuations over the years. In 2020, the company reported a negative return on total capital of -84.51%, indicating that the capital invested did not generate sufficient returns. However, there was a notable improvement in 2021, with a return on total capital of 66.16%, indicating a more favorable performance in utilizing the capital.
The positive trend continued in 2022, with a substantial increase to 110.27%, reflecting improved efficiency in generating profits from the total capital employed. Despite a slight decline in 2023 to 54.16%, the company still maintained a relatively healthy return on total capital.
By the end of 2024, Alpha Metallurgical Resources Inc's return on total capital decreased further to 13.01%, suggesting a possible decrease in profitability relative to the capital invested. Overall, the company has shown varying levels of performance in utilizing its total capital over the years, with the need for continued monitoring and strategic management to sustain favorable returns.
Peer comparison
Dec 31, 2024