Alpha Metallurgical Resources Inc (AMR)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 852,382 | 860,914 | 1,006,691 | 1,437,889 | 1,576,552 | 1,638,879 | 1,479,388 | 830,360 | 361,852 | 3,019 | -147,727 | -365,658 | -374,535 | -460,614 | -463,465 | -343,097 | -302,085 | -130,861 | -57,614 |
| Interest expense (ttm) | US$ in thousands | 6,923 | 7,069 | 7,077 | 10,439 | 21,802 | 36,419 | 52,003 | 64,747 | 69,654 | 71,580 | 72,988 | 74,342 | 74,528 | 73,680 | 73,781 | 70,542 | 67,521 | 62,351 | 52,058 |
| Interest coverage | 123.12 | 121.79 | 142.25 | 137.74 | 72.31 | 45.00 | 28.45 | 12.82 | 5.19 | 0.04 | -2.02 | -4.92 | -5.03 | -6.25 | -6.28 | -4.86 | -4.47 | -2.10 | -1.11 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $852,382K ÷ $6,923K
= 123.12
The interest coverage ratio for Alpha Metallurgical Resources Inc has shown a consistent upward trend over the past eight quarters, indicating improving financial health and ability to meet interest obligations. The ratio increased substantially from 13.48 in Q1 2022 to 248.21 in Q1 2023, signifying a significant enhancement in the company's ability to cover its interest expenses with operating income. This improvement reflects positively on the company's profitability and cash flow generation capabilities. Further analysis over time would be necessary to assess the sustainability of this positive trend and its implications for the company's long-term financial stability.
Peer comparison
Dec 31, 2023