Alpha Metallurgical Resources Inc (AMR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.12 | 0.24 | 0.30 | 0.34 | 0.34 | 0.34 | 0.31 | 0.30 | 0.28 | 0.25 | 0.22 | 0.22 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.21 | 0.45 | 0.67 | 0.78 | 0.77 | 0.74 | 0.63 | 0.60 | 0.50 | 0.46 | 0.40 | 0.38 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.26 | 0.81 | 2.01 | 3.53 | 3.36 | 2.87 | 1.72 | 1.51 | 0.98 | 0.84 | 0.67 | 0.62 |
| Financial leverage ratio | 1.53 | 1.51 | 1.50 | 1.52 | 1.62 | 1.65 | 1.68 | 2.27 | 3.40 | 6.76 | 10.24 | 9.82 | 8.40 | 5.61 | 4.98 | 3.51 | 3.31 | 3.07 | 2.87 |
The solvency ratios of Alpha Metallurgical Resources Inc indicate a strong financial position with consistently low levels of debt in relation to assets, capital, and equity. The debt-to-assets ratio remained at 0.00 throughout the last four quarters, reflecting the company's ability to finance its operations primarily through equity rather than debt. Similarly, the debt-to-capital ratio and debt-to-equity ratio also stayed low at 0.01 across the same period, highlighting a minimal reliance on borrowed funds for funding.
The financial leverage ratio, which measures the proportion of the company's assets that are financed by debt compared to equity, showed a declining trend from Q4 2022 to Q1 2023. This suggests that Alpha Metallurgical Resources Inc has reduced its reliance on debt financing relative to equity, which is a positive sign for solvency and financial stability.
Overall, the consistently low debt levels in relation to assets, capital, and equity, along with the decreasing trend in the financial leverage ratio, indicate a solid solvency position for Alpha Metallurgical Resources Inc, providing a strong foundation for its financial health and long-term sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). In the provided data, Alpha Metallurgical Resources Inc's interest coverage ratio has shown a positive trend over the past eight quarters.
In Q1 2022, the interest coverage ratio was at a relatively low level of 13.48, indicating that the company's EBIT was 13.48 times its interest expenses. However, the ratio has since improved significantly, with a substantial increase to 29.52 in Q2 2022, further improving to 47.85 in Q3 2022, and reaching 86.86 in Q4 2022.
The trend continued in 2023, with the interest coverage ratio in Q1 2023 soaring to 248.21. This demonstrates that Alpha Metallurgical Resources Inc's earnings are significantly more than sufficient to cover its interest expenses, reflecting a strong financial position and stability in meeting its debt obligations.
Overall, the increasing trend in the interest coverage ratio indicates the company's enhanced ability to service its interest payments, which is a positive signal for investors and creditors regarding the firm's financial health and risk management.