American Resources Corporation
AREC Basic Materials Coking Coal
In the quarter to December 2025, revenue grew 84.9%, EPS grew 774.2%, free cash flow fell 100.9% and total debt rose 47.4%, each against the same quarter a year earlier.
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American Resources Corporation (AREC) Altman Z-score
American Resources Corporation's Altman Z-score for fiscal 2024 is −1.67, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2024 | −1.67 | 5.01 |
| FY2023 | −6.68 | (2.69) |
| FY2022 | −4.00 | 2.13 |
| FY2021 | −6.13 | (0.17) |
| FY2020 | −5.96 | 5.14 |
| FY2019 | −11.10 | (8.96) |
| FY2018 | −2.15 | 4.89 |
| FY2017 | −7.04 | — |
How fiscal 2024’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.26) | — | −0.31 | |
| Retained earnings / total assets | (0.94) | — | −1.32 | |
| EBIT / total assets | (0.05) | — | −0.17 | |
| Market value of equity / total liabilities | 0.22 | — | 0.13 | |
| Sales / total assets | 0.00 | — | 0.00 | |
| Altman Z-score | Distress zone | −1.67 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −5.36 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| HCC Warrior Met Coal compare | 6.0× |
| AMR Alpha Metallurgical Resources, Inc. compare | 4.6× |
| METC Ramaco Resources, Inc. compare | 1.8× |
| SXC SunCoke Energy, Inc. compare | 1.5× |
| METCB Ramaco Resources, Inc. compare | 1.4× |
| AREC American Resources Corporation | −1.7× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets