Albany International Corporation (AIN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 115,283 | 173,420 | 291,776 | 302,036 | 241,316 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 226,366 | 248,679 | 211,316 | 208,166 | 190,863 |
| Cash ratio | 0.51 | 0.70 | 1.38 | 1.45 | 1.26 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($115,283K
+ $—K)
÷ $226,366K
= 0.51
The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term obligations using its cash and cash equivalents. Albany International Corporation's cash ratio has exhibited variability over the past five years:
- As of December 31, 2020, the cash ratio was 1.26, indicating that Albany had $1.26 in cash and cash equivalents for every $1 of current liabilities.
- By December 31, 2021, the cash ratio had improved to 1.45, suggesting stronger liquidity and the ability to cover short-term obligations more comfortably.
- The cash ratio slightly decreased to 1.38 by the end of 2022, still reflecting a solid ability to meet short-term obligations with available cash.
- However, there was a significant decline in the cash ratio to 0.70 as of December 31, 2023, which may indicate less liquidity and a potential strain on meeting short-term obligations using available cash.
- The trend continued to decrease, reaching 0.51 by December 31, 2024, signaling a further reduction in Albany's ability to cover immediate liabilities with cash and cash equivalents.
Overall, fluctuations in Albany International Corporation's cash ratio highlight the importance of maintaining a sufficient level of liquidity to meet short-term financial obligations. The declining trend in the cash ratio over the years may indicate a need for the company to closely monitor its cash management practices and ensure adequate liquidity in the future.