Arch Resources Inc (ARCH)
Payables turnover
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,639,097 | 2,665,403 | 2,679,306 | 2,715,387 | 2,651,639 | 2,499,633 | 2,309,614 | 2,024,207 | 1,821,727 | 1,557,032 | 1,641,821 | 1,605,408 | 1,668,163 | 1,956,538 | 1,941,959 | 2,074,932 | 1,704,645 | 1,232,637 | 745,225 | 298,777 |
| Payables | US$ in thousands | 205,001 | 198,374 | 188,494 | 176,953 | 211,848 | 186,322 | 165,143 | 147,284 | 131,986 | 102,025 | 116,042 | 122,916 | 103,743 | 99,110 | 104,464 | 108,972 | 133,060 | 166,129 | 138,735 | 138,935 |
| Payables turnover | 12.87 | 13.44 | 14.21 | 15.35 | 12.52 | 13.42 | 13.99 | 13.74 | 13.80 | 15.26 | 14.15 | 13.06 | 16.08 | 19.74 | 18.59 | 19.04 | 12.81 | 7.42 | 5.37 | 2.15 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,639,097K ÷ $205,001K
= 12.87
The payables turnover ratio for Arch Resources Inc has exhibited fluctuation over the past few quarters. The ratio indicates how many times a company pays off its accounts payable within a specific period. A higher payables turnover ratio typically implies that the company is managing its accounts payable efficiently by paying off its obligations quickly.
In analyzing Arch Resources Inc's payables turnover ratio, we observe an increasing trend from March 2019 to March 2020, indicating the company was paying its accounts payable more frequently during this period. Subsequently, there was a significant decline in the ratio in the following quarters, until March 2021. However, from June 2021 to December 2023, the payables turnover ratio seems to have stabilized at higher levels compared to the earlier periods.
The recent stability and relatively high values of the payables turnover ratio suggest that Arch Resources Inc has been effectively managing its accounts payable and maintaining good relationships with its suppliers. It also implies that the company is able to quickly convert its payables into cash, which can be positive for its liquidity and financial health. However, further analysis in conjunction with other financial metrics is recommended to gain a more comprehensive understanding of the company's financial performance.
Peer comparison
Dec 31, 2023