Albany International Corporation (AIN)

Short-term

Turnover ratios

Albany International Corp.'s activity ratios provide insight into how efficiently the company is managing its assets and operations.

1. Inventory turnover: The inventory turnover ratio measures how effectively a company is managing its inventory levels. Albany International Corp.'s inventory turnover ratio ranged from 3.82 to 4.64 over the past eight quarters, indicating that the company is efficiently managing its inventory and turning it over approximately 4 times a year on average.

2. Receivables turnover: The receivables turnover ratio reflects how efficiently a company is collecting its accounts receivable. Albany International Corp.'s receivables turnover ratio varied from 4.04 to 5.17 across the same period, suggesting that the company is collecting its receivables effectively, with customers paying approximately every 4 to 5 times a year on average.

3. Payables turnover: The payables turnover ratio measures how quickly a company is paying its suppliers. Albany International Corp.'s payables turnover ratio ranged from 8.31 to 10.23 over the past eight quarters, indicating that the company is managing its payables efficiently, with an average payment cycle of approximately 8 to 10 times a year.

4. Working capital turnover: The working capital turnover ratio evaluates how well a company is utilizing its working capital to generate revenue. Albany International Corp.'s working capital turnover ratio ranged from 1.48 to 1.82 over the same period, indicating that the company is generating revenue efficiently relative to its working capital levels.

Overall, based on these activity ratios, Albany International Corp. appears to be effectively managing its inventory, receivables, payables, and working capital to support its operations and generate revenue.

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Average number of days

To analyze Albany International Corp.'s activity ratios, we can look at three key metrics: Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH): This ratio measures how many days it takes for the company to convert its inventory into sales. A higher number indicates that the company is holding onto inventory for a longer period, which may tie up working capital and increase holding costs.

Albany International Corp.'s DOH has shown some fluctuation over the quarters, ranging from 78.67 days to 95.44 days. The recent trend suggests that the company had higher inventory levels in Q3 2023 and Q4 2023 compared to earlier quarters, which might indicate a slower inventory turnover rate in those periods.

2. Days of Sales Outstanding (DSO): DSO measures how many days it takes for the company to collect its accounts receivable. A higher DSO indicates that the company is taking longer to collect payment from customers, which could impact cash flow and working capital management.

Albany International Corp.'s DSO has varied across the quarters, with the lowest value recorded in Q1 2023 (74.40 days) and the highest in Q4 2023 (91.51 days). The increasing trend in DSO from Q1 2023 to Q4 2023 suggests that the company may be facing challenges in collecting receivables promptly.

3. Number of Days of Payables: This ratio represents how long it takes the company to pay its suppliers. A higher number of days indicates that the company is taking longer to settle its payables, which could be beneficial for cash flow management but might strain relationships with suppliers if stretched too far.

Albany International Corp.'s Number of Days of Payables has shown some fluctuation, ranging from 35.70 days to 43.90 days. The company appears to have extended its payment period in Q4 2023 compared to earlier quarters, which could provide a short-term cash flow benefit but may impact supplier relationships.

Overall, analyzing these activity ratios can provide insights into Albany International Corp.'s efficiency in managing inventory, accounts receivable, and payables, which are crucial for working capital management and overall financial health.

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Long-term

The fixed asset turnover ratio for Albany International Corp. has displayed some fluctuations over the past eight quarters, ranging from a low of 1.91 in Q4 2023 to a high of 2.45 in Q3 2022. This ratio measures how efficiently the company is generating sales from its fixed assets, with higher values indicating better utilization of these assets to generate revenue.

On the other hand, the total asset turnover ratio has also varied over the same period, with values between 0.60 and 0.64. This ratio reflects the company's ability to generate sales from its total assets, including both fixed and current assets. A higher total asset turnover ratio generally indicates that the company is effectively using its assets to generate revenue.

When comparing the two ratios, it is important to note that the fixed asset turnover ratio tends to be higher than the total asset turnover ratio, which is typical as fixed assets are a component of total assets. Both ratios provide insights into how efficiently Albany International Corp. is utilizing its assets to generate sales, with fluctuations potentially reflecting changes in the company's operations or asset utilization strategies.