Albany International Corporation (AIN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 945,613 | 820,990 | 721,315 | 708,671 | 656,431 |
| Inventory | US$ in thousands | 169,567 | 139,050 | 117,882 | 110,478 | 95,149 |
| Inventory turnover | 5.58 | 5.90 | 6.12 | 6.41 | 6.90 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $945,613K ÷ $169,567K
= 5.58
Albany International Corp.'s inventory turnover has been decreasing over the past five years, indicating a declining efficiency in managing its inventory. In 2019, the company had the highest inventory turnover of 6.90, which has since steadily decreased to 4.27 by the end of 2023.
A decreasing inventory turnover may suggest excess or obsolete inventory, inadequate sales, or inefficient inventory management practices. It may also imply slower sales or a buildup of inventory relative to the level of sales, which could tie up working capital and lead to increased holding costs.
Further investigation into the reasons behind this declining trend in inventory turnover is warranted to identify potential operational inefficiencies and develop strategies to improve inventory management practices.