Warrior Met Coal Inc (HCC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.13 | 6.23 | 6.14 | 11.76 | 6.38 |
| Receivables turnover | 10.77 | 15.43 | 11.16 | 8.03 | 8.87 |
| Payables turnover | 31.65 | 31.62 | 24.25 | 20.73 | 12.81 |
| Working capital turnover | 2.13 | 1.85 | 1.70 | 2.07 | 2.64 |
Warrior Met Coal Inc's activity ratios show fluctuations over the years.
1. Inventory turnover: The company's inventory turnover ratio increased from 6.38 in 2020 to 11.76 in 2021, indicating an improvement in how efficiently the company manages its inventory. However, this ratio declined to 6.14 in 2022, 6.23 in 2023, and 6.13 in 2024, suggesting a potential slowdown in inventory turnover efficiency.
2. Receivables turnover: Warrior Met Coal Inc's receivables turnover ratio decreased from 8.87 in 2020 to 8.03 in 2021, indicating a longer time to collect receivables. However, this ratio showed a significant improvement in 2022 with a ratio of 11.16, followed by further improvement to 15.43 in 2023. The ratio then decreased slightly to 10.77 in 2024.
3. Payables turnover: The payables turnover ratio for the company witnessed consistent growth from 12.81 in 2020 to 31.65 in 2024. This suggests that the company is taking longer to pay its suppliers, which could indicate potential liquidity advantages.
4. Working capital turnover: Warrior Met Coal Inc's working capital turnover ratio fluctuated over the years, with a decrease from 2.64 in 2020 to 2.07 in 2021. The ratio continued to decrease in 2022 to 1.70 but then improved in 2023 to 1.85 and further to 2.13 in 2024, indicating more efficient utilization of working capital for revenue generation.
In summary, the company has experienced varying levels of efficiency in managing its inventory, receivables, payables, and working capital turnover over the years. These ratios can provide insights into the company's operational effectiveness and financial performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.58 | 58.59 | 59.41 | 31.03 | 57.24 |
| Days of sales outstanding (DSO) | days | 33.89 | 23.66 | 32.70 | 45.43 | 41.16 |
| Number of days of payables | days | 11.53 | 11.54 | 15.05 | 17.61 | 28.50 |
Warrior Met Coal Inc's activity ratios provide insights into how efficiently the company manages its working capital and operational processes.
1. Days of Inventory on Hand (DOH):
- The trend in Warrior Met Coal Inc's DOH ratio shows fluctuations over the years. In 2021, the company reduced its inventory levels significantly from 57.24 days in 2020 to 31.03 days, indicating more efficient inventory management. However, this ratio increased in 2022 to 59.41 days, showing an increase in the number of days it takes to sell its inventory. Subsequently, the ratio remained fairly stable in 2023 and 2024, indicating a consistent inventory turnover.
2. Days of Sales Outstanding (DSO):
- Warrior Met Coal Inc's DSO ratio fluctuated over the years. In 2020, the company took 41.16 days on average to collect its accounts receivable, and this increased to 45.43 days in 2021, indicating a potential issue with collecting payments efficiently. However, the DSO ratio improved significantly in 2023, dropping to 23.66 days, showcasing more efficient credit management. There was a slight increase in 2024 to 33.89 days, but overall the company seems to be collecting receivables in a timely manner.
3. Number of Days of Payables:
- The trend in Warrior Met Coal Inc's payables days shows a consistent reduction over the years, indicating the company is taking longer to pay its outstanding obligations. In 2020, the company took 28.50 days on average to pay its suppliers, which decreased to 11.53 days in 2024. This reduction may indicate improved negotiation terms with suppliers or potential working capital management strategies.
Overall, by analyzing these activity ratios, we can conclude that Warrior Met Coal Inc has made efforts to improve its operational efficiency and working capital management over the years. However, it is essential for the company to monitor these ratios continuously to ensure continued efficiency in its business operations.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.02 | 1.53 | 2.59 | 1.98 | 1.33 |
| Total asset turnover | 0.59 | 0.72 | 0.86 | 0.71 | 0.56 |
Warrior Met Coal Inc's long-term activity ratios have shown fluctuations over the years based on the provided data. The Fixed Asset Turnover ratio, which indicates how efficiently the company is utilizing its fixed assets to generate sales, has demonstrated an increasing trend from 1.33 in 2020 to 2.59 in 2022, but then experienced a decline to 1.02 in 2024. This suggests that the company improved its efficiency in utilizing its fixed assets to generate revenue but faced a setback in 2024.
On the other hand, the Total Asset Turnover ratio, which measures the company's overall efficiency in generating sales from all its assets, increased from 0.56 in 2020 to 0.86 in 2022, showing a positive trend. However, it dipped to 0.59 in 2024, indicating a decrease in the company's ability to generate sales from its total assets.
In summary, Warrior Met Coal Inc's Fixed Asset Turnover ratio has shown mixed performance over the years, with improvements followed by a decline in 2024. The Total Asset Turnover ratio initially increased but declined in 2024, reflecting fluctuations in the company's overall efficiency in utilizing its assets to generate sales.