Alpha Metallurgical Resources Inc (AMR)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 852,382 | 860,914 | 1,006,691 | 1,437,889 | 1,576,552 | 1,638,879 | 1,479,388 | 830,360 | 361,852 | 3,019 | -147,727 | -365,658 | -374,535 | -460,614 | -463,465 | -343,097 | -302,085 | -130,861 | -57,614 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | 246,341 | 443,241 | 499,084 | 573,002 | 572,241 | 574,052 | 588,757 | 617,631 | 643,053 | 583,671 | 583,074 | 599,254 |
| Total stockholders’ equity | US$ in thousands | 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 | 696,122 | 868,938 | 967,221 |
| Return on total capital | 54.16% | 55.26% | 64.25% | 92.85% | 110.27% | 119.48% | 112.11% | 70.60% | 36.55% | 0.40% | -20.09% | -49.25% | -48.38% | -49.44% | -45.13% | -26.46% | -23.60% | -9.01% | -3.68% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $852,382K ÷ ($—K + $1,573,930K)
= 54.16%
Alpha Metallurgical Resources Inc's return on total capital has displayed fluctuating trends over the past eight quarters. The return on total capital ratio measures how effectively the company utilizes its total capital to generate profits.
In Q1 2022, the return on total capital was at 73.47%, showing a solid performance. This was followed by a significant increase in Q2 2022 to 114.99%, indicating improved efficiency in capital utilization. The ratio continued to rise in Q3 2022 to 121.45%, reaching its peak during this period.
However, there was a slight decline in Q4 2022 to 112.23%, still maintaining a strong performance. The trend continued in the first quarter of 2023, with a return on total capital of 94.13%, indicating that the company was able to generate profits efficiently with the capital employed.
In Q2 2023, the return on total capital saw another notable increase to 65.46%, showcasing a positive trend in capital efficiency. This trend continued in Q3 2023 and Q4 2023, with returns of 56.79% and 56.02% respectively.
Overall, the fluctuating trends in Alpha Metallurgical Resources Inc's return on total capital suggest variations in the company's ability to generate profits relative to its total capital over the past eight quarters. Further analysis and comparison to industry standards may provide additional insights into the company's financial performance.
Peer comparison
Dec 31, 2023