Arch Resources Inc (ARCH)

Liquidity ratios

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
Current ratio 2.49 2.27 2.43 2.58 1.93 2.49 2.48 1.78 1.69 1.48 1.33 1.96 2.03 2.12 2.06 2.28 2.27 2.55 2.67 2.80
Quick ratio 1.62 1.42 1.45 1.55 1.20 1.78 1.79 1.26 1.27 0.99 0.83 1.23 1.36 1.30 1.23 1.37 1.47 1.64 1.84 1.94
Cash ratio 0.87 0.60 0.70 0.66 0.64 1.26 0.68 0.63 0.65 0.48 0.45 0.80 0.98 0.83 0.79 0.84 0.93 1.03 1.26 1.29

The liquidity ratios of Arch Resources Inc show varying levels of liquidity over the periods detailed in the table. The current ratio, which measures the company's ability to meet short-term liabilities with current assets, generally ranged between 1.33 and 2.58. It improved over the quarters of 2023 compared to the previous year, indicating a better ability to cover immediate obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also showed fluctuations between 0.83 and 1.78. While there were some improvements in the quick ratio during 2023, the levels suggest that the company may sometimes have difficulty meeting its short-term liabilities without relying on inventory.

The cash ratio, representing the most conservative liquidity measure by considering only cash and cash equivalents to cover current liabilities, varied between 0.45 and 1.29. This ratio also showed fluctuations, indicating that at times Arch Resources Inc may have had a lower ability to pay off immediate obligations solely with cash on hand.

Overall, the liquidity ratios of Arch Resources Inc suggest that the company generally maintained a healthy liquidity position during the periods examined, with fluctuations in liquidity levels observed throughout the quarters. It is important for investors and stakeholders to monitor these ratios to assess the company's ability to meet its short-term financial obligations.

Additional liquidity measure

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
Cash conversion cycle days 37.37 37.70 37.62 41.80 25.02 25.73 58.22 55.16 60.85 59.93 48.39 40.70 32.84 36.48 32.48 32.76 26.51 33.18 44.56 37.62

The cash conversion cycle of Arch Resources Inc has fluctuated over the past few quarters. For the most recent period ending December 31, 2023, the cash conversion cycle was at 37.37 days. This indicates that, on average, the company takes 37.37 days to convert its investments in inventory into cash receipts from customers, taking into account the time it takes to sell the inventory and collect payments.

Looking at the trend over the quarters, we see that there was a slight increase in the cash conversion cycle in the most recent quarter compared to the previous quarter, indicating a potential delay in the conversion of inventory into cash receipts. However, the current cycle is still lower than some previous quarters, such as June 30, 2022, when the cycle was at 58.22 days, suggesting an improvement in efficiency since then.

Overall, the fluctuations in the cash conversion cycle suggest varying efficiency in managing the company's working capital and operations. It is important for Arch Resources Inc to closely monitor and manage its cash conversion cycle to ensure optimal liquidity and operational performance.