Arch Resources Inc (ARCH)

Solvency 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
Debt-to-assets ratio 0.04 0.05 0.05 0.05 0.05 0.05 0.05 0.06 0.16 0.22 0.22 0.29 0.28 0.22 0.18 0.18 0.16 0.15 0.16 0.16
Debt-to-capital ratio 0.07 0.07 0.07 0.07 0.08 0.09 0.10 0.13 0.33 0.50 0.56 0.65 0.63 0.50 0.37 0.36 0.31 0.29 0.30 0.30
Debt-to-equity ratio 0.07 0.08 0.08 0.08 0.09 0.10 0.11 0.14 0.49 1.00 1.26 1.85 1.68 1.01 0.59 0.56 0.45 0.42 0.42 0.43
Financial leverage ratio 1.68 1.69 1.67 1.66 1.78 1.96 1.95 2.33 3.10 4.66 5.64 6.30 6.07 4.52 3.29 3.13 2.92 2.74 2.71 2.66

Arch Resources Inc's solvency ratios show a trend of improvement over the years based on the data provided. The debt-to-assets ratio has decreased steadily from 0.16 in December 2021 to 0.04 in December 2023, indicating that the company has been able to reduce its debt relative to its total assets.

Similarly, the debt-to-capital ratio and debt-to-equity ratio have also shown a declining trend over the years, suggesting that the company has been successful in decreasing its reliance on debt to fund its operations. The debt-to-capital ratio decreased from 0.56 in June 2021 to 0.07 in December 2023, and the debt-to-equity ratio decreased from 1.26 in June 2021 to 0.07 in December 2023.

The financial leverage ratio, which indicates the proportion of a company's assets that are financed with debt, has also shown improvement, decreasing from 6.30 in March 2021 to 1.66 in December 2023. This indicates that the company has been able to decrease its financial risk over the years by reducing its debt levels.

Overall, the solvency ratios of Arch Resources Inc demonstrate a positive trend towards a stronger financial position and reduced reliance on debt for financing its operations.

Coverage 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
Interest coverage 38.21 43.21 46.43 60.40 53.73 41.34 35.23 23.96 15.16 2.91 -15.81 -20.30 -22.88 -19.33 2.58 9.69 15.20 19.39 16.74 15.02

Arch Resources Inc's interest coverage ratio has fluctuated over the periods shown in the table. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt using its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

In the recent periods, particularly from Dec 31, 2021, to Dec 31, 2023, Arch Resources Inc's interest coverage ratio has improved significantly, signifying a stronger ability to cover its interest payments. This improvement can be attributed to higher operating income or lower interest expenses.

However, it is worth noting that there were periods, such as Jun 30, 2021, to Mar 31, 2022, where the interest coverage ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses during those periods. Negative interest coverage ratios are a red flag for investors and creditors as they suggest financial distress.

Overall, monitoring the interest coverage ratio over time is crucial for assessing Arch Resources Inc's financial health and its ability to meet debt obligations. Investors and stakeholders should pay attention to trend analysis and investigate the factors driving the changes in the interest coverage ratio to make informed decisions.