Albany International Corporation (AIN)
Payables 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 |
| Payables | US$ in thousands | 87,104 | 69,707 | 68,954 | 49,173 | 65,203 |
| Payables turnover | 10.86 | 11.78 | 10.46 | 14.41 | 10.07 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $945,613K ÷ $87,104K
= 10.86
Albany International Corp.'s payables turnover has fluctuated over the last five years. The payables turnover ratio measures how efficiently a company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more frequently within a given period.
In this case, the payables turnover ratio has decreased from 10.07 in 2019 to 8.31 in 2023, indicating a declining trend in the company's payables turnover efficiency.
The decrease in the payables turnover ratio could suggest that Albany International Corp. is taking longer to pay its suppliers compared to previous years. This could be due to various reasons such as changes in payment terms, financial constraints, or negotiation strategies with suppliers.
It is important for the company to closely monitor its payables turnover ratio as it reflects its liquidity and relationships with suppliers. A consistently low payables turnover ratio could indicate potential cash flow issues or strained supplier relationships that may require management's attention.