Albany International Corporation (AIN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,230,620 | 1,147,910 | 1,034,890 | 929,240 | 900,610 |
| Total current assets | US$ in thousands | 730,692 | 877,964 | 838,439 | 758,801 | 717,276 |
| Total current liabilities | US$ in thousands | 226,366 | 248,679 | 211,316 | 208,166 | 190,863 |
| Working capital turnover | 2.44 | 1.82 | 1.65 | 1.69 | 1.71 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,230,620K ÷ ($730,692K – $226,366K)
= 2.44
Albany International Corporation's working capital turnover has shown a fluctuating trend over the past five years. The ratio decreased from 1.71 in 2020 to 1.69 in 2021, and further dropped to 1.65 in 2022. However, there was a significant improvement in 2023, with the ratio increasing to 1.82, and a notable surge to 2.44 in 2024.
A working capital turnover ratio indicates how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio generally signifies that the company is effectively managing its working capital to support its operations and sales activities.
Albany International Corporation's increasing trend in working capital turnover from 2022 to 2024 suggests that the company has enhanced its efficiency in utilizing its working capital to generate sales revenue. This improvement may indicate better inventory management, effective accounts receivable collection, or optimized accounts payable processes.
However, it is essential to conduct a more in-depth analysis and consider other financial metrics to gain a comprehensive understanding of Albany International Corporation's financial performance and efficiency in managing its working capital.