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 Mar 31, 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 246,341 443,241 499,084 573,002 572,241 574,052 588,757 617,631 643,053 583,671 583,074 599,254 575,631
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 1,080,640
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

Company name
Symbol
Return on total capital
Alpha Metallurgical Resources Inc
AMR
54.16%
Arch Resources Inc
ARCH
35.74%
Peabody Energy Corp
BTU
31.08%