Arch Resources Inc (ARCH)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 566,373 | 1,099,450 | 363,419 | -330,190 | 250,532 |
| Long-term debt | US$ in thousands | 105,252 | 116,288 | 337,623 | 477,215 | 290,066 |
| Total stockholders’ equity | US$ in thousands | 1,479,460 | 1,365,580 | 683,866 | 283,561 | 640,536 |
| Return on total capital | 35.74% | 74.19% | 35.58% | -43.40% | 26.92% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $566,373K ÷ ($105,252K + $1,479,460K)
= 35.74%
The return on total capital for Arch Resources Inc has shown some fluctuations over the past five years. In 2023, the return on total capital was 35.74%, indicating the company generated $0.3574 in earnings for every dollar of total capital invested. This figure declined from 74.19% in 2022 but was still relatively robust compared to previous years.
The significant drop to -43.40% in 2020 suggests that the company experienced challenges and incurred losses exceeding the total capital invested during that period. However, the rebound to 26.92% in 2019 and subsequent improvement in the following years demonstrate the company's ability to recover and enhance its profitability relative to capital employed.
Overall, while the return on total capital for Arch Resources Inc has been volatile, the recent positive trend indicates an improvement in the company's efficiency in generating returns from its total capital base. Additional insights and analysis on operating performance and capital structure would provide further context for a comprehensive assessment of the company's financial health.
Peer comparison
Dec 31, 2023