Alpha Metallurgical Resources Inc (AMR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | 443,241 | 574,052 | 583,671 |
| Total stockholders’ equity | US$ in thousands | 1,573,930 | 1,429,760 | 546,909 | 200,102 | 696,122 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.45 | 0.74 | 0.46 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,573,930K)
= 0.00
The debt-to-capital ratio of Alpha Metallurgical Resources Inc has exhibited a declining trend over the past four years. In particular, the ratio decreased significantly from 0.74 at the end of 2020 to 0.45 at the end of 2021. This decrease indicates a reduction in the company's reliance on debt financing relative to its total capital structure.
Moreover, the ratio remained relatively stable at 0.01 for both 2022 and 2023, suggesting that the company has maintained a conservative approach towards debt utilization during these periods. A lower debt-to-capital ratio implies a stronger financial position with a greater proportion of capital being funded by equity rather than debt.
Overall, the declining trend in the debt-to-capital ratio of Alpha Metallurgical Resources Inc reflects a positive financial strategy of maintaining a balanced capital structure while potentially reducing financial risk and enhancing the company's creditworthiness.
Peer comparison
Dec 31, 2023