Arch Resources Inc (ARCH)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,129,900 | 3,689,710 | 2,121,840 | 1,453,160 | 2,275,990 |
| Total current assets | US$ in thousands | 917,767 | 823,851 | 882,871 | 588,140 | 706,747 |
| Total current liabilities | US$ in thousands | 367,961 | 426,879 | 522,340 | 290,096 | 310,980 |
| Working capital turnover | 5.69 | 9.29 | 5.89 | 4.88 | 5.75 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,129,900K ÷ ($917,767K – $367,961K)
= 5.69
The working capital turnover ratio for Arch Resources Inc has fluctuated over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.
In 2023, the working capital turnover ratio decreased to 5.69 from 9.29 in 2022, suggesting a decline in efficiency in utilizing working capital to generate revenue. However, the ratio was still relatively high, indicating the company's ability to generate sales with a lower level of working capital.
Comparing to 2021 and 2020, the ratio in 2023 was slightly below the levels seen in those years, but it was higher than the ratio in 2019. This indicates that the efficiency of working capital utilization improved compared to 2019 but saw a slight decline from the peak in 2022.
Overall, while there was a decrease in the working capital turnover ratio in 2023 compared to 2022, the company has historically shown a relatively strong ability to generate revenue with its working capital resources.
Peer comparison
Dec 31, 2023