Alpha Metallurgical Resources Inc (AMR)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 214,561 | 414,439 | 528,205 | 679,726 | 848,563 | 856,630 | 1,002,407 | 1,434,192 | 1,576,200 | 1,642,815 | 1,490,427 | 847,861 | 386,712 | 230,915 | 81,836 | 23,850 | 14,892 | -282,231 | -262,036 | -309,766 |
| Interest expense (ttm) | US$ in thousands | 3,811 | 4,829 | 5,534 | 6,289 | 6,923 | 7,069 | 7,077 | 10,439 | 21,802 | 36,419 | 52,003 | 64,747 | 69,654 | 71,580 | 72,631 | 73,483 | 73,098 | 71,527 | 71,985 | 69,248 |
| Interest coverage | 56.30 | 85.82 | 95.45 | 108.08 | 122.57 | 121.18 | 141.64 | 137.39 | 72.30 | 45.11 | 28.66 | 13.09 | 5.55 | 3.23 | 1.13 | 0.32 | 0.20 | -3.95 | -3.64 | -4.47 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $214,561K ÷ $3,811K
= 56.30
The interest coverage ratio is a financial metric that indicates a company's ability to meet its interest obligations with its earnings. A higher interest coverage ratio is generally seen as more favorable, as it suggests that the company is more capable of servicing its debt.
Analyzing the interest coverage ratio of Alpha Metallurgical Resources Inc over the periods provided in the data, we observe a significant improvement in the company's ability to cover its interest payments.
From March 31, 2020, to December 31, 2020, the interest coverage ratio was negative, indicating that the company's earnings were insufficient to cover its interest expenses. However, from March 31, 2021, onwards, the interest coverage ratio turned positive and showed a consistent upward trend.
The interest coverage ratio increased steadily throughout 2021 and 2022, reaching particularly high levels by the end of 2022. This sharp improvement suggests that Alpha Metallurgical Resources Inc significantly enhanced its ability to cover interest expenses, potentially driven by increased earnings or reduced interest obligations.
Although there was a slight dip in the interest coverage ratio in the first half of 2023, it remained at relatively healthy levels and continued to be well above one, indicating the company's ability to cover its interest payments from operating income.
Overall, the trend in Alpha Metallurgical Resources Inc's interest coverage ratio demonstrates a positive financial performance and improved financial health, indicating a more sustainable financial position and reduced risk of defaulting on debt payments.
Peer comparison
Dec 31, 2024