Albany International Corporation (AIN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,126,480 | 1,027,600 | 913,291 | 868,834 | 1,054,130 |
| Receivables | US$ in thousands | 308,471 | 223,457 | 218,269 | 213,989 | 238,597 |
| Receivables turnover | 3.65 | 4.60 | 4.18 | 4.06 | 4.42 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,126,480K ÷ $308,471K
= 3.65
The receivables turnover ratio for Albany International Corp. has shown some fluctuations over the past five years. The ratio was highest in 2022 at 5.17 and lowest in 2023 at 3.99. Generally, the ratio has remained relatively stable between 4.70 to 4.84 from 2019 to 2021.
Receivables turnover ratio indicates how efficiently a company is able to collect its accounts receivable during a specific period. A higher ratio signifies that the company is able to convert its receivables into cash quickly, which is generally favorable. Conversely, a lower ratio may indicate slower collections or that the company is extending lenient credit terms to customers.
The decreasing trend in the receivables turnover ratio from 2022 to 2023 could suggest potential issues with the company's collections process or changes in credit policies that may be impacting the efficiency of receivables management. It is important for stakeholders to further investigate the reasons behind this decline to ensure the company's financial health and liquidity are not compromised.