Alpha Metallurgical Resources Inc (AMR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.48 | 1.50 | 1.52 | 1.55 | 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 |
Based on the provided data, Alpha Metallurgical Resources Inc has consistently maintained a very strong solvency position as evidenced by its solvency ratios over the years.
1. Debt-to-assets ratio: The company has maintained a debt-to-assets ratio of 0.00 throughout the entire period, indicating that the company has not relied on debt financing to fund its assets. This implies a low risk of insolvency related to its asset base.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also remained at 0.00 consistently. This suggests that the company has not utilized debt to finance its capital structure, indicating a healthy balance between debt and equity.
3. Debt-to-equity ratio: The debt-to-equity ratio has also been reported as 0.00 for all periods, reflecting that the company has not taken on debt in relation to its equity. This implies that the company's operations are primarily funded by equity, reducing the risk of financial distress.
4. Financial leverage ratio: The financial leverage ratio has shown a decreasing trend from 3.51 in March 2020 to 1.48 in December 2024. This declining trend indicates that the company has been reducing its reliance on debt over time, which is a positive reflection of improved financial stability and lower financial risk.
Overall, the solvency ratios of Alpha Metallurgical Resources Inc demonstrate a prudent financial management strategy with a conservative approach towards debt financing, resulting in a robust and sustainable solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of Alpha Metallurgical Resources Inc has shown significant improvement over the reporting periods, reflecting the company's ability to meet its interest obligations from its operating income.
Initially, the interest coverage was negative, indicating that the company's operating income was insufficient to cover its interest expenses. However, from December 31, 2020, onwards, the interest coverage turned positive, with a notable upward trend.
The improvement in the interest coverage ratio indicates that Alpha Metallurgical Resources Inc is generating higher earnings relative to its interest expenses, which is a positive signal for creditors and investors. The ratio has been consistently increasing, reaching its peak at 141.64 on June 30, 2023, before slightly declining in the subsequent periods.
Overall, the increasing trend in the interest coverage ratio suggests that the company's financial position has strengthened, and it is in a better position to service its debt obligations with its operating income. Investors and creditors may view this positively as it indicates the company's improved ability to manage its debt burden effectively.