Albany International Corporation (AIN)

Albany International Corp.'s liquidity ratios have experienced fluctuations over the past five years. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, shows a generally decreasing trend from 3.05 in 2019 to 3.53 in 2023. This indicates that the company's current assets have been increasing relative to its current liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has followed a similar pattern with a decrease from 2.58 in 2019 to 2.85 in 2023. Despite the decline, Albany International Corp. remains able to cover its short-term obligations with more liquid assets.

Looking at the cash ratio, which indicates the firm's ability to pay off its current liabilities with cash and cash equivalents, there is variability in the trend with a peak in 2022 at 2.36 and a significant drop to 1.69 in 2023. This suggests that the company's cash position relative to its current liabilities has fluctuated, potentially signaling changes in cash management practices.

Overall, Albany International Corp. has maintained healthy liquidity levels over the years, as evidenced by their current, quick, and cash ratios consistently above 1.0. However, management should continue to monitor and manage liquidity carefully to ensure the company's ability to meet its short-term obligations without strain.

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Additional liquidity measure

The cash conversion cycle of Albany International Corp. has shown some fluctuations over the past five years. In 2023, the company's cash conversion cycle increased to 133.07 days compared to the previous year, indicating that the company took longer to convert its investments in inventory into cash in the current period.

In 2022 and 2021, the cash conversion cycle was relatively lower at 109.78 days and 107.83 days, respectively, suggesting that the company was more efficient in managing its working capital during those years. However, in 2020, the cash conversion cycle increased to 118.91 days, indicating a potential slowdown in the company's cash conversion efficiency.

Notably, in 2019, Albany International Corp. had the lowest cash conversion cycle of 94.36 days, implying that the company was able to convert its investments in inventory into cash more quickly during that year.

Overall, the trend in the cash conversion cycle of Albany International Corp. suggests some fluctuations in the company's working capital management efficiency over the past five years, with variations in the time taken to convert inventory investments into cash. Further analysis of the underlying factors driving these changes may provide insights into the company's operational performance and liquidity management.