Albany International Corporation (AIN)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 115,283 | 127,222 | 116,439 | 125,412 | 173,420 | 171,506 | 300,916 | 304,258 | 291,776 | 276,482 | 320,870 | 307,415 | 302,036 | 286,217 | 253,330 | 237,871 | 241,316 | 215,304 | 204,037 | 222,680 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 226,366 | 218,721 | 224,636 | 211,990 | 248,679 | 242,797 | 181,115 | 184,691 | 211,316 | 189,537 | 188,160 | 178,067 | 208,166 | 181,501 | 175,588 | 166,962 | 190,863 | 178,909 | 177,202 | 175,621 |
| Cash ratio | 0.51 | 0.58 | 0.52 | 0.59 | 0.70 | 0.71 | 1.66 | 1.65 | 1.38 | 1.46 | 1.71 | 1.73 | 1.45 | 1.58 | 1.44 | 1.42 | 1.26 | 1.20 | 1.15 | 1.27 |
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 of Albany International Corporation has exhibited fluctuations over the past few years, ranging from a high of 1.73 to a low of 0.51. The ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents. Generally, a higher cash ratio indicates a stronger ability to meet these obligations.
Albany International Corporation's cash ratio peaked at 1.73 on March 31, 2022, indicating a significant level of liquidity at that time. Subsequently, the ratio slightly decreased to 1.71 on June 30, 2022, before experiencing a more noticeable decline to 0.71 on September 30, 2023, and further dropping to 0.51 on December 31, 2024. These lower ratios suggest a decreasing ability to cover short-term obligations solely with cash and cash equivalents.
It is essential for the company to closely monitor its cash position and maintain a balance between holding adequate cash reserves for liquidity needs and investing excess cash to generate returns. Fluctuations in the cash ratio could signal changes in the company's financial health and warrant further investigation and strategic financial management.