American Resources (American Resources) Financial Strength : 1 (As of Mar. 2024)

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What is American Resources Financial Strength?

American Resources has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

American Resources Corp displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

American Resources did not have earnings to cover the interest expense. American Resources's debt to revenue ratio for the quarter that ended in Mar. 2024 was 544.58. As of today, American Resources's Altman Z-Score is -2.01.

Competitive Comparison of American Resources's Financial Strength

For the Coking Coal subindustry, American Resources's Financial Strength, along with its competitors' market caps and Financial Strength 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.

American Resources's Financial Strength Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, American Resources's Financial Strength distribution charts can be found below:

* The bar in red indicates where American Resources's Financial Strength falls into.

American Resources Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

American Resources's Interest Expense for the months ended in Mar. 2024 was $-0.25 Mil. Its Operating Income for the months ended in Mar. 2024 was $-6.72 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $198.40 Mil.

American Resources's Interest Coverage for the quarter that ended in Mar. 2024 is

American Resources did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

American Resources's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio	=	Total Debt (Q: Mar. 2024 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(6.362	+	198.399)	/	0.376
	=	544.58

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

American Resources has a Z-score of -2.01, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -2.01 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.

American Resources (NAS:AREC) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

American Resources has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

American Resources Financial Strength Related Terms

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American Resources (American Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » American Resources Corp (NAS:AREC) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

N/A

Address

12115 Visionary Way, Fishers, IN, USA, 46038

Website

https://www.americanresourcescorp.com

American Resources Corp is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The firm is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. The firm has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated. Its business model provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets.

Executives

Kirk Patrick Taylor	10 percent owner, officer: Chief Financial Officer	8856 SOUTH STREET, FISHERS IN 46038
Mark C. Jensen	director, 10 percent owner, officer: Chief Executive Officer	8856 SOUTH STREET, FISHERS IN 46038
Golden Properties Ltd.	10 percent owner	#500, 1177 WEST HASTINGS STREET, VANCOUVER A1 V6E 2K3
Thomas M. Sauve	director, 10 percent owner, officer: President	8856 SOUTH STREET, FISHERS IN 46038
Gerardine G. Botte	director	12115 VISIONARY WAY, SUITE 174, FISHERS IN 456038
Michael G. Layman	director	7583 WILD MINT COURT, WESTERVILLE OH 43082
Randal V. Stephenson	director	35 EAST 84TH STREET, APT. 4C, NEW YORK NY 10028
Taplin Courtenay O.	director	9370 METCALF ROAD, WAITE HILL OH 44094
Ian Sadler	director	10760 ELDORADO CIRCLE, NOBLESVILLE IN 46060
Tarlis Thompson	officer: Chief Operating Officer	PO BOX 606, FISHERS IN 46038
William D Bishop	director	8856 SOUTH STREET, FISHERS IN 46038
James C New	director	7289 GARDEN RD, SUITE 200, RIVIERA BEACH FL 33404
High Tech Fueling, Service & Distribution, Inc.	other: Corporation with common owners	7135 COLLINS AVENUE, SUITE 624, MIAMI BEACH FL 33141
Goran Antic	10 percent owner	7135 COLLINS AVE NO. 1234, MIAMI BEACH FL 33141
Indrajith Andrew Weeraratne	director, 10 percent owner, officer: Chief Executive Officer	7135 COLLINS AVE NO.624, MIAMI BEACH FL 33141