Alpha Metallurgical Resources (Alpha Metallurgical Resources) Sloan Ratio % : 1.53% (As of Dec. 2023)

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What is Alpha Metallurgical Resources Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Alpha Metallurgical Resources's Sloan Ratio for the quarter that ended in Dec. 2023 was 1.53%.

As of Dec. 2023, Alpha Metallurgical Resources has a Sloan Ratio of 1.53%, indicating the company is in the safe zone and there is no funny business with accruals.

Alpha Metallurgical Resources Sloan Ratio % Historical Data

The historical data trend for Alpha Metallurgical Resources's Sloan Ratio % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Alpha Metallurgical Resources Sloan Ratio % Chart

Alpha Metallurgical Resources Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

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-11.14

-21.79

10.97

12.71

1.53

Alpha Metallurgical Resources Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Sloan Ratio %	Get a 7-Day Free Trial															12.71	14.77	0.11	8.64	1.53

Competitive Comparison of Alpha Metallurgical Resources's Sloan Ratio %

For the Coking Coal subindustry, Alpha Metallurgical Resources's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Alpha Metallurgical Resources's Sloan Ratio % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Alpha Metallurgical Resources's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Alpha Metallurgical Resources's Sloan Ratio % falls into.

Alpha Metallurgical Resources Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Alpha Metallurgical Resources's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(721.956	-	851.159
	-	-166)	/	2406.057
	=	1.53%

Alpha Metallurgical Resources's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2023 )
	=	(721.956	-	851.159
	-	-166)	/	2406.057
	=	1.53%

Alpha Metallurgical Resources's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 270.771 (Mar. 2023 ) + 181.355 (Jun. 2023 ) + 93.814 (Sep. 2023 ) + 176.016 (Dec. 2023 ) = $722 Mil.
Alpha Metallurgical Resources's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 177.387 (Mar. 2023 ) + 317.219 (Jun. 2023 ) + 157.2 (Sep. 2023 ) + 199.353 (Dec. 2023 ) = $851 Mil.
Alpha Metallurgical Resources's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -27.891 (Mar. 2023 ) + -43.41 (Jun. 2023 ) + -55.336 (Sep. 2023 ) + -39.363 (Dec. 2023 ) = $-166 Mil.

Alpha Metallurgical Resources (NYSE:AMR) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Dec. 2023, Alpha Metallurgical Resources has a Sloan Ratio of 1.53%, indicating the company is in the safe zone and there is no funny business with accruals.

Alpha Metallurgical Resources Sloan Ratio % Related Terms

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Alpha Metallurgical Resources (Alpha Metallurgical Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Alpha Metallurgical Resources Inc (NYSE:AMR) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

340 Martin Luther King Jr. Boulevard, Bristol, TN, USA, 37620

Website

https://www.alphametresources.com

Alpha Metallurgical Resources Inc is a Tennessee-based coal mining company with operations across Virginia and West Virginia. The company's portfolio of mining operations consists of underground mines, surface mines and coal preparation plants. It produces low-ash metallurgical coal, including High-Vol. A, Mid-Vol., High-Vol. B, and Low-Vol. coal, which is shipped to domestic and international coke and steel producers. The reportable segments of the company are Met. It extracts, processes and markets met and thermal coal from deep and surface mines for sale to steel and coke producers, industrial customers, and electric utilities.

Executives

David J. Stetson	director	C/O CONTURA ENERGY, INC., 340 MARTIN LUTHER KING JR. BLVD., BRISTOL TN 37620
Daniel E. Horn	officer: Executive Vice President-Sales	C/O CONTURA ENERGY, INC., 340 MARTIN LUTHER KING JR. BLVD., BRISTOL TN 37620
Jason E. Whitehead	officer: Chief Operating Officer	C/O CONTURA ENERGY, INC., 340 MARTIN LUTHER KING JR. BLVD., BRISTOL TN 37620
Roger Lee Nicholson	officer: EVP, Gen. Counsel & Secretary	C/O CONTURA ENERGY, INC., 340 MARTIN LUTHER KING JR. BLVD., BRISTOL TN 37620
Baker De Neufville Joanna	director	340 MARTIN LUTHER KING JR BLVD, BRISTOL TN 37620
Michael Gorzynski	director, other: See Remarks	595 MADISON AVE, FLOOR 29, NEW YORK NY 10022
Continental General Holdings Llc	other: See Remarks	11001 LAKELINE BLVD., STE. 120, AUSTIN TX 78717
Mg Capital Management Ltd.	other: See Remarks	C/O CAMPBELLS LLP, FLOOR 4, WILLOW HOUSE, CRICKET SQUARE, GRAND CAYMAN E9 KY1-9010
Percy Rockdale Llc	other: See Remarks	595 MADISON AVENUE, 29TH FLOOR, NEW YORK NY 10022
Continental Insurance Group, Ltd.	other: See Remarks	11001 LAKELINE BLVD., STE. 120, AUSTIN TX 78717
Continental General Insurance Co	other: See Remarks	11001 LAKELINE BLVD., STE. 120, AUSTIN TX 78717
Joshua Todd Munsey	officer: Chief Financial Officer	340 MARTIN LUTHER KING BOULEVARD, BRISTOL TN 37620
Elizabeth Anne Fessenden	director	1137 WEST AVENUE, RICHMOND VA 23220
Scott D. Vogel	director	885 PARK AVENUE, NEW YORK NY 10075
Charles Andrew Eidson	officer: Chief Financial Officer	ONE ALPHA PLACE, P.O. BOX 16429, BRISTOL VA 24209