Albany International Corporation (AIN)

Albany International Corporation's liquidity ratios indicate a strong ability to meet short-term obligations. The current ratio has consistently remained above 3, indicating that the company has more than enough current assets to cover its current liabilities. The trend shows an improvement over time, reaching a peak of 4.99 on June 30, 2023. This suggests efficient management of current assets and liabilities, providing a cushion against any unforeseen financial challenges.

The quick ratio, which measures the ability to meet short-term obligations without relying on inventory, also demonstrates a healthy liquidity position. While there are slight fluctuations, the ratio has generally been above 1, reflecting a positive trend. However, there was a notable decrease in the quick ratio on September 30, 2023, and December 31, 2023, indicating a potential decrease in the company's ability to quickly cover its liabilities without relying on inventory.

The cash ratio mirrors the quick ratio, as it also excludes inventory from current assets. The trend of the cash ratio aligns closely with that of the quick ratio, showing an overall stable liquidity position with a temporary dip on September 30, 2023, and December 31, 2023.

Overall, based on the current, quick, and cash ratios, Albany International Corporation appears to have a solid liquidity position, although fluctuations in some periods warrant monitoring to ensure the company's ability to meet short-term obligations remains robust.

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Additional liquidity measure

The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Albany International Corporation, the trend in the cash conversion cycle over the past few years shows fluctuations, indicating changes in efficiency in managing cash flows and working capital.

From March 31, 2020, to December 31, 2024, the cash conversion cycle for Albany International Corporation has varied within a range of 62.10 days to 95.44 days. The company experienced an increase in the cash conversion cycle from 62.10 days on March 31, 2020, to a peak of 95.44 days on September 30, 2023. This indicates that the company took longer to convert its investments into cash during this period, potentially facing challenges in managing working capital efficiently.

Subsequently, the cash conversion cycle decreased to 64.23 days as of December 31, 2024, showing an improvement in the efficiency of cash flow management. A lower cash conversion cycle generally indicates that the company is able to collect cash from sales faster, manage inventory levels effectively, and pay its suppliers promptly.

Overall, analyzing the cash conversion cycle provides insights into the company's liquidity and operational efficiency. In the case of Albany International Corporation, fluctuations in the cash conversion cycle highlight the importance of closely monitoring working capital management practices to optimize cash flows and maximize financial performance.