Arch Resources Inc (ARCH)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.49 | 1.93 | 1.69 | 2.03 | 2.27 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $917,767K ÷ $367,961K
= 2.49
The current ratio of Arch Resources Inc has shown some fluctuations over the past five years. As of December 31, 2023, the current ratio stands at 2.49, indicating that the company has $2.49 in current assets for every $1 in current liabilities. This represents an improvement compared to the previous year, where the current ratio was 1.93.
In 2023, the current ratio is at its highest level over the five-year period under review, suggesting that Arch Resources Inc has improved its short-term liquidity position. A current ratio above 2 is generally considered healthy as it indicates that the company has ample current assets to cover its short-term obligations.
It is important to note that while a high current ratio reflects a good liquidity position, it could also suggest that the company is not efficiently managing its current assets. Therefore, further analysis of the components of current assets and liabilities is necessary to gain a more comprehensive understanding of Arch Resources Inc's liquidity management.
Peer comparison
Dec 31, 2023