Arch Resources Inc (ARCH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.46% | 30.07% | 17.30% | -22.72% | 10.67% |
| Operating profit margin | 17.54% | 29.71% | 16.20% | -23.45% | 10.37% |
| Pretax margin | 17.62% | 29.24% | 16.00% | -23.72% | 10.28% |
| Net profit margin | 14.83% | 36.07% | 15.91% | -23.71% | 10.27% |
Arch Resources Inc has shown variability in its profitability ratios over the past five years. The gross profit margin has fluctuated significantly, with a sharp decrease in 2020 followed by a recovery in 2021 and a slight decline in 2023. The operating profit margin and pretax margin have followed a similar trend, with a notable improvement in 2021 compared to 2020.
The net profit margin, which indicates the company's bottom-line profitability, also exhibits significant fluctuations. The company experienced a substantial loss in 2020, followed by a sharp increase in 2022, before dropping slightly in 2023. Overall, the net profit margin has shown volatility over the period analyzed.
It is essential for investors and stakeholders to closely monitor Arch Resources Inc's profitability ratios, as they indicate the company's ability to generate profits from its operations. Continued analysis of these ratios can provide valuable insights into the company's financial health and performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.10% | 45.06% | 16.24% | -19.78% | 12.64% |
| Return on assets (ROA) | 18.68% | 54.70% | 15.94% | -20.01% | 12.52% |
| Return on total capital | 35.74% | 74.19% | 35.58% | -43.40% | 26.92% |
| Return on equity (ROE) | 31.37% | 97.46% | 49.36% | -121.53% | 36.50% |
Arch Resources Inc's profitability ratios show significant fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has been volatile, ranging from -19.78% in 2020 to a high of 45.06% in 2022. It decreased in 2023 to 22.10%, indicating a decline in operating performance efficiency compared to the previous year.
2. Return on assets (ROA) also displayed volatility, with a negative figure in 2020 (-20.01%) and a significant increase to 54.70% in 2022. In 2023, ROA decreased to 18.68%, implying a lower profitability generated from total assets compared to the previous year.
3. Return on total capital experienced fluctuations as well, ranging from a negative figure in 2020 (-43.40%) to a peak of 74.19% in 2022. In 2023, it stands at 35.74%, showing a decline in returns relative to the previous year.
4. Return on equity (ROE) has also shown variability, with a low of -121.53% in 2021 and a high of 97.46% in 2022. In 2023, ROE decreased to 31.37%, implying lower profitability generated for shareholders compared to the prior year.
Overall, the company's profitability ratios have been volatile, indicating fluctuations in operational efficiency, profitability, and returns to both assets and equity holders over the past five years.