Albany International Corporation (AIN)

Cash conversion cycle

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Days of inventory on hand (DOH) days 64.23 84.72 78.67 78.11 76.15
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 64.23 84.72 78.67 78.11 76.15

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 64.23 + — – —
= 64.23

The cash conversion cycle of Albany International Corporation has shown some fluctuations over the past five years. In 2020, the company had a cash conversion cycle of 76.15 days, indicating that it took approximately 76 days for the company to convert its investments in inventory into cash receipts from customers.

By the end of 2021, the cash conversion cycle had slightly increased to 78.11 days, suggesting a slightly slower conversion of inventory into cash compared to the previous year. This trend continued into 2022, with a further increase to 78.67 days.

The most significant change occurred by the end of 2023, when the cash conversion cycle surged to 84.72 days. This indicates a lengthening of the time it takes for the company to convert its investments in inventory into cash receipts.

However, by the end of 2024, there was a notable improvement in the cash conversion cycle, decreasing to 64.23 days. This may suggest that the company implemented more efficient inventory management or improved its collection processes to shorten the time it takes to convert inventory into cash.

Overall, the varying trends in the cash conversion cycle over the years may reflect changes in the company's operations, sales, inventory management, and collection processes. Analyzing this metric can provide insights into the company's working capital efficiency and liquidity management.