Albany International Corporation (AIN)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 3.53 3.53 4.99 4.82 3.97 4.27 4.44 4.43 3.65 4.14 4.09 4.22 3.76 3.80 3.67 3.76 3.05 3.13 3.19 2.99
Quick ratio 1.94 1.90 3.10 2.93 2.44 2.62 2.88 3.03 2.50 2.82 2.67 2.71 2.39 2.51 2.41 2.57 2.14 2.16 2.29 2.15
Cash ratio 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 0.96 0.91 1.09 0.91

Albany International Corp.'s liquidity ratios, namely the current ratio, quick ratio, and cash ratio, have shown fluctuations over the past eight quarters. The current ratio reflects the company's ability to cover its short-term liabilities with its current assets.

The current ratio has remained consistently above 3.0 in the last two years, indicative of a strong liquidity position. In the most recent quarter, Q4 2023, the current ratio stood at 3.53, showing the company has $3.53 in current assets for every $1 in current liabilities. This demonstrates a healthy liquidity position and suggests the company is well-equipped to meet its short-term obligations.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also indicates a strong liquidity position for Albany International Corp. The quick ratio has generally been above 2.5 in the past two years, with Q4 2023 showing a ratio of 2.85. This suggests that the company can quickly cover its short-term liabilities even without relying on selling inventory.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has also been consistently healthy for Albany International Corp. With a cash ratio above 1.5 in the last eight quarters, the company has shown the ability to cover a significant portion of its current liabilities with cash alone. In Q4 2023, the cash ratio was 1.69, indicating a strong cash position.

Overall, Albany International Corp.'s liquidity ratios paint a positive picture of the company's ability to meet its short-term obligations. These ratios suggest that the company has sufficient liquidity to withstand any unforeseen challenges and continue its operations smoothly.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 131.73 142.70 125.31 115.60 110.20 112.32 113.82 119.36 112.00 123.94 123.51 123.11 121.64 130.16 119.81 108.88 99.27 108.46 107.20 107.20

The cash conversion cycle of Albany International Corp. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 133.07 days, reflecting an improvement compared to the previous quarter (Q3 2023) when it was 148.79 days. However, the cycle in Q4 2023 was still higher than in Q1 2023 and Q4 2022.

Typically, a decreasing cash conversion cycle indicates efficiency in managing cash flow and working capital. In this case, the company was able to convert its investments into sales and ultimately into cash at a faster rate in Q4 2023 compared to the previous quarter.

It’s worth noting that the cash conversion cycle is influenced by various factors such as inventory turnover, accounts receivable collection period, and accounts payable payment period. Therefore, further analysis of these components would provide a more in-depth understanding of Albany International Corp.'s working capital management.