Albany International Corporation (AIN)
Days of inventory on hand (DOH)
| 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 | 5.68 | 5.20 | 4.99 | 4.57 | 4.27 | 3.82 | 4.45 | 4.31 | 4.64 | 4.61 | 4.47 | 4.60 | 4.67 | 4.59 | 4.37 | 4.42 | 4.79 | 4.91 | 5.17 | 5.88 | |
| DOH | days | 64.23 | 70.13 | 73.08 | 79.83 | 85.46 | 95.44 | 82.09 | 84.75 | 78.67 | 79.14 | 81.64 | 79.35 | 78.11 | 79.47 | 83.60 | 82.61 | 76.15 | 74.38 | 70.59 | 62.10 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.68
= 64.23
The Days of Inventory on Hand (DOH) for Albany International Corporation has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The DOH started at 62.10 days in March 2020 and gradually increased, peaking at 95.44 days in September 30, 2023. This increase in DOH indicates that Albany International Corporation took longer to sell its inventory, potentially tying up more capital in inventory holdings.
However, there was a downward trend observed in the later quarters, with the DOH decreasing to 64.23 days by December 31, 2024. This decline in DOH suggests that the company may have improved its inventory management efficiency, resulting in quicker turnover of inventory.
It is important to note that a higher DOH could imply excessive inventory levels, leading to increased storage costs and potentially obsolete inventory. On the other hand, a lower DOH may indicate a more efficient inventory management system but could also point to potential stockouts and lost sales opportunities.
Albany International Corporation should continue monitoring its DOH to strike a balance between maintaining optimal inventory levels to meet customer demand while minimizing excess holding costs. Further analysis of other financial ratios and operational factors can provide a more comprehensive understanding of the company's overall performance and efficiency in managing its inventory.