Core Natural Resources, Inc. (CNR)

Short-term

Turnover ratios

Core Natural Resources, Inc.'s inventory turnover has shown fluctuations over the analyzed period. It started low at 0.49 in March 2020, gradually increased to 6.07 by December 2023, and then decreased to 5.17 in December 2024. This indicates the company's ability to sell and replace its inventory efficiently improved significantly during the period.

The receivables turnover ratio was not available for most of the years. However, in September 2022 and December 2022, the company had receivables turnover ratios of 13.83 and 11.90, respectively. This suggests that Core Natural Resources collected its outstanding receivables efficiently during those periods.

In terms of payables turnover, similar to receivables turnover, the ratio was not available for most years. Although in September and December 2022, the company had payables turnover ratios of 3.02 and 2.97, respectively. This implies that Core Natural Resources managed its payables effectively during those periods.

The working capital turnover ratio indicates how effectively the company utilizes its working capital to generate sales. There was a significant increase in this ratio from 1.42 in March 2020 to 47.07 in September 2022. This sharp increase may indicate either improved operational efficiency or strategic changes in working capital management. However, the ratio decreased to 8.04 by December 2024, suggesting a decline in the efficiency of working capital utilization.

In summary, Core Natural Resources, Inc. has experienced fluctuations in its activity ratios over the analyzed period, with varying levels of efficiency in managing inventory, receivables, payables, and working capital turnover. The company should continue to monitor and optimize these ratios to enhance operational efficiency and financial performance.

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Average number of days

Based on the provided data for Core Natural Resources, Inc., let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH indicates how many days, on average, the company holds inventory before selling it.
- Core Natural Resources, Inc. experienced fluctuations in its DOH over the years, ranging from lows of around 60 days to highs exceeding 800 days.
- A higher DOH can indicate slower inventory turnover and may suggest issues such as overstocking or slow sales.
- The company should closely monitor and manage its inventory levels to optimize operations and reduce holding costs.

2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes for a company to collect revenue after a sale is made.
- The data provided shows that DSO was not available or reported for most periods, except for some values in late 2022.
- A lower DSO is generally preferred as it signifies faster cash collection and efficient credit management practices.
- Core Natural Resources, Inc. should aim to track and improve its DSO to enhance cash flow and liquidity.

3. Number of Days of Payables:
- This ratio indicates the average number of days the company takes to pay its suppliers.
- Core Natural Resources, Inc. did not report payable days until late 2022 when values around 120 days were recorded.
- A higher number of days of payables suggest the company takes longer to settle its bills, which may indicate cash flow constraints or strategic cash management processes.
- It is important for the company to balance its payables effectively to maintain good relationships with suppliers while preserving cash for operational needs.

In conclusion, Core Natural Resources, Inc. should focus on optimizing its inventory management, enhancing cash collection processes, and effectively managing payables to improve its overall working capital efficiency and financial performance. Monitoring and adjusting these activity ratios can help the company achieve better operational and financial stability in the long run.

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Long-term

The Fixed Asset Turnover ratio for Core Natural Resources, Inc. has shown fluctuations over the years. It increased from 1.98 in March 2020 to 3.10 in March 2021, indicating an improvement in the company's ability to generate revenue from its fixed assets. However, the ratio decreased to 1.19 by December 2022 and stayed relatively low at 1.19 in June 2022. This decline suggests a potential decrease in efficiency in utilizing fixed assets to generate sales revenue.

On the other hand, the Total Asset Turnover ratio for the company started at a low of 0.24 in March 2020, but gradually increased to 0.41 in June 2021, indicating an improvement in the company's overall efficiency in generating sales from its total assets. The ratio peaked at 0.94 in March 2024 before declining slightly to 0.30 in June 2024.

Overall, while the Fixed Asset Turnover ratio indicates variability in the efficiency of utilizing fixed assets, the Total Asset Turnover ratio shows an overall improvement in the company's ability to generate sales with its total assets, albeit with some fluctuations. Further monitoring of these ratios will be necessary to assess the long-term sustainability and efficiency of Core Natural Resources, Inc.'s operations.