Arch Resources Inc (ARCH)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 566,373 | 648,111 | 740,060 | 1,059,447 | 1,099,449 | 1,116,043 | 1,024,714 | 644,330 | 363,420 | 51,695 | -230,616 | -308,024 | -330,190 | -261,578 | 37,686 | 149,587 | 250,532 | 343,304 | 315,295 | 292,979 |
| Long-term debt | US$ in thousands | 105,252 | 107,515 | 109,216 | 110,899 | 116,288 | 121,914 | 127,107 | 132,290 | 337,623 | 416,446 | 402,076 | 519,357 | 477,215 | 368,278 | 323,854 | 330,036 | 290,066 | 292,781 | 295,263 | 297,733 |
| Total stockholders’ equity | US$ in thousands | 1,479,460 | 1,396,150 | 1,425,560 | 1,463,990 | 1,365,580 | 1,186,060 | 1,188,710 | 924,252 | 683,866 | 414,643 | 318,529 | 281,443 | 283,561 | 365,646 | 547,782 | 593,764 | 640,536 | 705,436 | 697,950 | 699,947 |
| Return on total capital | 35.74% | 43.10% | 48.22% | 67.27% | 74.19% | 85.33% | 77.88% | 60.98% | 35.58% | 6.22% | -32.00% | -38.46% | -43.40% | -35.64% | 4.32% | 16.19% | 26.92% | 34.39% | 31.74% | 29.37% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $566,373K ÷ ($105,252K + $1,479,460K)
= 35.74%
Arch Resources Inc's return on total capital has shown fluctuations over the past years. The ratio has demonstrated a positive trend from negative values in early 2021 to a peak of 85.33% in the third quarter of 2022 before gradually declining. The returns have been notably high in 2022 and early 2023, indicating efficient utilization of the company's capital to generate profits. However, the ratio experienced a sharp decline in the latter half of 2023, suggesting a potential decrease in profitability relative to the invested capital. Overall, a significant portion of total capital has been effectively employed by the company to generate returns, although recent data indicate a need for further analysis to understand the underlying factors behind the fluctuations in the return on total capital.
Peer comparison
Dec 31, 2023