Does Alpha Metallurgical Resources (NYSE:AMR) Have A Healthy Balance Sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. As with many other companies Alpha Metallurgical Resources, Inc. (NYSE:AMR) makes use of debt. But the real question is whether this debt is making the company risky.

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What Risk Does Debt Bring?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. If things get really bad, the lenders can take control of the business. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we examine debt levels, we first consider both cash and debt levels, together.

How Much Debt Does Alpha Metallurgical Resources Carry?

You can click the graphic below for the historical numbers, but it shows that Alpha Metallurgical Resources had US$2.32m of debt in June 2025, down from US$3.91m, one year before. However, it does have US$449.0m in cash offsetting this, leading to net cash of US$446.7m.

A Look At Alpha Metallurgical Resources' Liabilities

Zooming in on the latest balance sheet data, we can see that Alpha Metallurgical Resources had liabilities of US$243.3m due within 12 months and liabilities of US$516.1m due beyond that. Offsetting these obligations, it had cash of US$449.0m as well as receivables valued at US$296.0m due within 12 months. So these liquid assets roughly match the total liabilities.

Having regard to Alpha Metallurgical Resources' size, it seems that its liquid assets are well balanced with its total liabilities. So while it's hard to imagine that the US$2.15b company is struggling for cash, we still think it's worth monitoring its balance sheet. While it does have liabilities worth noting, Alpha Metallurgical Resources also has more cash than debt, so we're pretty confident it can manage its debt safely. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Alpha Metallurgical Resources's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.

View our latest analysis for Alpha Metallurgical Resources

In the last year Alpha Metallurgical Resources had a loss before interest and tax, and actually shrunk its revenue by 30%, to US$2.4b. That makes us nervous, to say the least.

So How Risky Is Alpha Metallurgical Resources?

While Alpha Metallurgical Resources lost money on an earnings before interest and tax (EBIT) level, it actually generated positive free cash flow US$174m. So taking that on face value, and considering the net cash situation, we don't think that the stock is too risky in the near term. With revenue growth uninspiring, we'd really need to see some positive EBIT before mustering much enthusiasm for this business. For riskier companies like Alpha Metallurgical Resources I always like to keep an eye on whether insiders are buying or selling. So click here if you want to find out for yourself.

If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.