Albany International Corporation (AIN)

Inventory turnover

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cost of revenue (ttm) US$ in thousands 945,136 893,385 858,990 840,973 820,990 792,231 773,606 748,463 721,132 709,219 696,034 685,430 660,659 637,055 638,925 643,103 656,413 659,013 651,520 646,502
Inventory US$ in thousands 169,567 180,991 151,360 153,777 139,050 133,840 133,667 123,835 117,882 118,129 120,665 117,022 110,478 113,107 115,532 109,426 95,149 105,705 104,254 102,379
Inventory turnover 5.57 4.94 5.68 5.47 5.90 5.92 5.79 6.04 6.12 6.00 5.77 5.86 5.98 5.63 5.53 5.88 6.90 6.23 6.25 6.31

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $945,136K ÷ $169,567K
= 5.57

Albany International Corp.'s inventory turnover ratio has shown some fluctuations over the past eight quarters, ranging from a low of 3.82 to a high of 4.64. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced within a specific period.

Overall, the average inventory turnover ratio for Albany International Corp. over the period is 4.41, suggesting that, on average, the company is able to sell and replace its inventory approximately 4.41 times a year. A higher inventory turnover ratio generally indicates more efficient inventory management and a faster movement of goods through the company's operations. This can lead to lower carrying costs, less risk of inventory obsolescence, and potentially better profitability.

The fluctuations in inventory turnover may be influenced by various factors such as changes in demand, production efficiency, supply chain disruptions, or seasonal variations in sales. It is important for the company to closely monitor its inventory turnover ratio to ensure optimal inventory management and operational performance.