Alpha Metallurgical Resources Inc (AMR)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,649,500K
= 0.00
Based on the provided data, Alpha Metallurgical Resources Inc has maintained a debt-to-equity ratio of 0.00 consistently over the five-year period from December 31, 2020, to December 31, 2024. This indicates that the company has been utilizing minimal or no debt to finance its operations and growth, relying predominantly on equity financing.
A debt-to-equity ratio of 0.00 signifies that the company's debt levels are either extremely low or non-existent relative to its equity. This can be seen as a positive indicator, as a lower debt-to-equity ratio typically implies lower financial risk and a stronger financial position. It suggests that Alpha Metallurgical Resources Inc may have strong equity capital, potentially providing a cushion against financial downturns and the ability to invest in growth opportunities without being highly leveraged.
However, it is essential to consider that while a low debt-to-equity ratio may indicate financial stability and conservative financial management, it could also imply missed opportunities for leveraging debt to potentially enhance returns on investment during periods of favorable interest rates. Moreover, the company's specific industry, growth strategy, and future capital requirements should be taken into account to assess the optimal capital structure for Alpha Metallurgical Resources Inc.
Peer comparison
Dec 31, 2024