Warrior Met Coal Inc (HCC)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 6.11 6.34 7.15 7.31 6.22 10.35 7.84 8.16 6.13 6.41 5.51 6.33 11.74 7.72 5.59 5.58 6.36 4.52 4.88 7.18
Receivables turnover 10.82 10.74 9.43 7.99 15.43 6.13 7.81 8.95 11.08 8.29 5.41 4.60 8.03 11.64 12.76 10.09 8.86 9.53 8.77 7.31
Payables turnover 31.59 26.89 19.00 28.02 31.56 25.58 33.02 35.49 24.20 17.77 16.52 11.57 20.68 18.55 16.34 11.59 12.78 14.06 13.45 15.45
Working capital turnover 2.14 2.04 1.84 1.78 1.85 1.71 1.48 1.67 1.69 1.82 1.65 1.75 2.07 2.47 2.59 2.43 2.64 2.14 2.29 2.64

Warrior Met Coal Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate revenue.

1. Inventory Turnover:
The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. Warrior Met Coal's inventory turnover fluctuated over the years but generally stayed around 6 to 7 times annually until it surged to 11.74 by December 31, 2021. The company saw a subsequent decline, settling at 6.11 by December 31, 2024. Overall, the company effectively managed its inventory levels during this period.

2. Receivables Turnover:
The receivables turnover ratio indicates how efficiently a company collects cash from its credit sales. Warrior Met Coal's receivables turnover demonstrated variability, peaking at 15.43 by December 31, 2023, and then slightly declining to 10.82 by December 31, 2024. Despite the fluctuations, the company maintained a relatively healthy turnover, suggesting effective credit management practices.

3. Payables Turnover:
The payables turnover ratio reflects how quickly a company pays its suppliers. Warrior Met Coal showed some inconsistency in its payables turnover, with a notable increase from 11.59 on March 31, 2021, to 35.49 by March 31, 2023, before decreasing to 31.59 by December 31, 2024. The significant variations could indicate changes in payment terms with suppliers over the years.

4. Working Capital Turnover:
The working capital turnover ratio signifies how efficiently a company utilizes its working capital to generate sales revenue. Warrior Met Coal's working capital turnover experienced a slight decline from 2.64 on March 31, 2020, to 2.14 by September 30, 2020, before stabilizing around 1.7 to 2.1 from March 31, 2023, to December 31, 2024. This suggests that the company effectively utilized its working capital to support its operations and sales activities.

Overall, Warrior Met Coal maintained relatively efficient asset and liability management practices, as evidenced by its activity ratios over the analyzed period.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 59.70 57.56 51.02 49.96 58.69 35.25 46.54 44.75 59.52 56.93 66.19 57.69 31.10 47.28 65.31 65.38 57.35 80.80 74.84 50.85
Days of sales outstanding (DSO) days 33.73 33.99 38.71 45.68 23.66 59.55 46.72 40.79 32.95 44.04 67.50 79.41 45.43 31.35 28.61 36.17 41.22 38.30 41.63 49.90
Number of days of payables days 11.55 13.57 19.21 13.02 11.56 14.27 11.05 10.29 15.08 20.54 22.10 31.55 17.65 19.68 22.34 31.48 28.56 25.96 27.14 23.62

Warrior Met Coal Inc's Days of Inventory on Hand (DOH) ratio has shown fluctuations over the periods analyzed. The company's ability to manage its inventory has varied, with the ratio ranging from a low of 31.10 days to a high of 80.80 days. Generally, a lower DOH indicates better inventory management efficiency.

In terms of Days of Sales Outstanding (DSO), Warrior Met Coal Inc has also experienced fluctuations in its collection period over the years. The DSO ratio ranged from a low of 23.66 days to a high of 79.41 days. A lower DSO suggests that the company is collecting its receivables more quickly, which is favorable for its cash flow management.

The Number of Days of Payables ratio for Warrior Met Coal Inc has shown a decreasing trend in general. The company has been taking longer to pay its suppliers, with the ratio declining from 28.56 days to 11.55 days. A longer payment period can be beneficial for the company's cash flow but may strain relationships with suppliers if excessive.

Overall, monitoring these activity ratios is crucial for assessing Warrior Met Coal Inc's operational efficiency and financial health. Fluctuations in these ratios may indicate changes in the company's inventory management, accounts receivable collection, and accounts payable practices, providing insights into its working capital management.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 1.03 1.19 1.34 1.43 1.53 1.75 1.92 2.58 2.57 2.94 2.73 2.25 1.98 1.61 1.52 1.36 1.33 1.38 1.58 2.04
Total asset turnover 0.59 0.64 0.67 0.69 0.72 0.74 0.72 0.87 0.85 0.92 0.84 0.73 0.71 0.63 0.62 0.56 0.56 0.56 0.64 0.79

Warrior Met Coal Inc's Fixed Asset Turnover ratio has shown fluctuations over the years. It decreased from 2.04 in March 2020 to 1.03 in December 2024 with some variability in between. The ratio reached its peak of 2.94 in September 2022.

On the other hand, the Total Asset Turnover ratio demonstrates a declining trend over the same period. It started at 0.79 in March 2020 and decreased to 0.59 in December 2024, with some variation in between. The highest value observed was 0.92 in September 2022.

The Fixed Asset Turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate sales, while the Total Asset Turnover ratio reflects the efficiency in generating sales from all assets. The declining trend in Total Asset Turnover may suggest a decrease in the company's overall efficiency in utilizing its assets to generate revenue. In contrast, the fluctuations in Fixed Asset Turnover could indicate changes in the efficiency of utilizing fixed assets specifically.

Investors and analysts may want to further investigate the reasons behind these ratios' movements to assess Warrior Met Coal Inc's operational efficiency and asset management strategies.