Alpha Metallurgical Resources Inc (AMR)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.81 | 2.87 | 0.84 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,573,930K
= 0.00
Alpha Metallurgical Resources Inc's debt-to-equity ratio has been consistently low in 2022 and 2023, both at 0.01, indicating that the company has a minimal level of debt compared to its equity. This suggests that the company is primarily financed by equity rather than debt during these periods.
However, looking at the ratios for 2021 and 2020, there was a significant increase from 0.82 to 2.91, indicating a substantial rise in the proportion of debt relative to equity. This suggests that the company relied more on debt financing in these years, which could potentially indicate increased financial risk and leverage.
Overall, the downward trend in the debt-to-equity ratio from 2021 to 2023 is a positive sign as it shows a move towards a healthier financial structure with lower reliance on debt for funding operations. It would be beneficial for Alpha Metallurgical Resources Inc to continue monitoring and managing its debt levels to maintain a balanced capital structure.
Peer comparison
Dec 31, 2023