Albany International Corporation (AIN)

Albany International Corporation has exhibited strong liquidity positions over the past five years based on its liquidity ratios. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has remained consistently above 3 throughout the period. This indicates that Albany International Corporation has more than enough current assets to meet its current liabilities, reflecting a healthy financial position.

Furthermore, the quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventories from current assets. Although there has been some fluctuation in this ratio, with a significant decrease in 2023 and 2024, the quick ratio has generally remained above 1, indicating that Albany International Corporation can meet its short-term obligations without relying on the sale of inventory.

The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents to cover current liabilities, has shown a similar trend as the quick ratio. This ratio has decreased significantly in 2023 and 2024, signaling a potential decrease in the company's ability to cover its short-term obligations with just cash and cash equivalents.

Overall, Albany International Corporation's liquidity ratios suggest that the company has maintained a strong liquidity position over the years, as evidenced by healthy current ratios and relatively stable quick ratios. However, the decreasing trend in the cash ratio in the most recent years may warrant further attention to ensure continued financial stability and ability to meet short-term obligations efficiently.

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Additional liquidity measure

The cash conversion cycle of Albany International Corporation has shown fluctuations over the years from December 31, 2020, to December 31, 2024. It increased from 76.15 days in 2020 to 84.72 days in 2023, indicating a longer time for the company to convert its investments in inventory back into cash. However, there was a notable improvement in 2024, with the cycle decreasing to 64.23 days.

Overall, a longer cash conversion cycle may imply that Albany International Corporation is taking more time to sell its products, collect payments from customers, and manage its inventory effectively. Conversely, a shorter cash conversion cycle suggests that the company is more efficient in these areas. Investors and stakeholders may monitor this metric closely to assess the company's operational efficiency and liquidity management.