Albany International Corporation (AIN)
Working capital 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 |
| Total current assets | US$ in thousands | 877,964 | 838,439 | 758,801 | 717,276 | 618,334 |
| Total current liabilities | US$ in thousands | 248,679 | 211,316 | 208,166 | 190,863 | 202,719 |
| Working capital turnover | 1.79 | 1.64 | 1.66 | 1.65 | 2.54 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,126,480K ÷ ($877,964K – $248,679K)
= 1.79
Albany International Corp.'s working capital turnover has experienced fluctuations over the past five years. The ratio ranged from 1.65 in 2022 to 2.54 in 2019. A higher working capital turnover indicates that the company is efficiently utilizing its working capital to generate sales revenue. In contrast, a lower ratio may suggest that the company is not effectively managing its working capital or may have excess working capital that is not being utilized optimally.
The decrease in working capital turnover from 2019 to 2022 may indicate a slowdown in the efficiency of the company's working capital management. However, the slight increase in 2023 compared to 2022 suggests a potential improvement in utilizing working capital to support sales activities.
Overall, monitoring the trend of working capital turnover is crucial as it provides insights into the efficiency of working capital utilization and can help assess the company's operational effectiveness and financial health.