Alpha Metallurgical Resources Inc (AMR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.48 | 1.53 | 1.62 | 3.40 | 8.40 |
Alpha Metallurgical Resources Inc's solvency ratios indicate a consistently strong financial position over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 from 2020 to 2024, suggesting that the company has no debt relative to its assets, capital, or equity during this period.
Furthermore, the Financial leverage ratio has shown a decreasing trend, declining from 8.40 in 2020 to 1.48 in 2024. This indicates that the company has been reducing its reliance on debt to finance its operations, which is a positive sign for investors and creditors as it lowers the financial risk associated with the business.
Overall, based on these solvency ratios, Alpha Metallurgical Resources Inc appears to have a solid financial foundation with minimal debt levels and improving financial leverage, reflecting a healthy and stable financial position.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 56.30 | 123.12 | 72.31 | 5.19 | -2.27 |
The interest coverage ratio for Alpha Metallurgical Resources Inc has shown a significant fluctuation over the years. In December 31, 2020, the company had an interest coverage ratio of -2.27, indicating that the company's earnings were not sufficient to cover its interest expenses, which is a concerning sign for creditors and investors.
However, there has been a substantial improvement in the company's interest coverage ratio over the following years. By December 31, 2021, the interest coverage had increased to 5.19, signaling that the company's earnings were able to cover its interest payments more comfortably.
The trend continued to improve significantly in the subsequent years, with the interest coverage ratio reaching 72.31 by December 31, 2022, 123.12 by December 31, 2023, and 56.30 by December 31, 2024. These figures indicate that Alpha Metallurgical Resources Inc has not only managed to cover its interest expenses but also has a substantial buffer to cover unforeseen financial challenges.
Overall, the improving trend in the interest coverage ratio reflects positively on the company's financial health and ability to meet its debt obligations, suggesting a strengthening financial position over the years.