Arch Resources Inc (ARCH)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,129,896 | 3,214,888 | 3,332,788 | 3,697,621 | 3,689,711 | 3,567,460 | 3,296,340 | 2,625,198 | 2,121,844 | 1,745,170 | 1,536,181 | 1,404,731 | 1,453,160 | 1,646,594 | 1,882,740 | 2,132,589 | 2,281,496 | 2,382,979 | 2,395,562 | 2,416,529 |
| Total current assets | US$ in thousands | 917,767 | 806,144 | 817,975 | 862,916 | 823,851 | 991,074 | 1,021,330 | 907,013 | 882,871 | 648,639 | 555,046 | 583,200 | 588,140 | 562,982 | 564,502 | 639,537 | 706,747 | 866,969 | 840,693 | 832,836 |
| Total current liabilities | US$ in thousands | 367,961 | 355,463 | 335,951 | 334,538 | 426,879 | 398,748 | 412,188 | 509,095 | 522,340 | 438,880 | 416,141 | 297,680 | 290,096 | 266,118 | 273,470 | 280,482 | 310,980 | 339,993 | 314,544 | 297,731 |
| Working capital turnover | 5.69 | 7.13 | 6.91 | 7.00 | 9.29 | 6.02 | 5.41 | 6.60 | 5.89 | 8.32 | 11.06 | 4.92 | 4.88 | 5.55 | 6.47 | 5.94 | 5.76 | 4.52 | 4.55 | 4.52 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,129,896K ÷ ($917,767K – $367,961K)
= 5.69
Based on the working capital turnover of Arch Resources Inc over the past several quarters, it is evident that the company has experienced fluctuations in this ratio. The working capital turnover measures how efficiently the company is utilizing its working capital to generate revenue.
The working capital turnover ratio indicates how many times a company's working capital is used or turned over in generating sales revenue over a specific period. A higher ratio typically indicates more efficient utilization of working capital.
Looking at the trend in Arch Resources Inc's working capital turnover, we observe that the ratio has varied significantly, ranging from a low of 4.52 to a high of 11.06. The ratio has shown inconsistency, with some quarters demonstrating a higher turnover compared to others.
For instance, in the first quarter of 2021, the working capital turnover ratio was at its highest at 11.06, suggesting a very efficient utilization of working capital in generating revenue. On the other hand, in the third quarter of 2020 and the fourth quarter of 2019, the ratio was at its lowest at 4.52, indicating a less efficient use of working capital.
Overall, the working capital turnover trend for Arch Resources Inc indicates varying levels of efficiency in utilizing its working capital over the periods analyzed. It would be important for the company to further investigate the factors contributing to these fluctuations and work towards maintaining a more consistent and efficient use of its working capital.
Peer comparison
Dec 31, 2023