Albany International Corporation (AIN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 173,420 | 291,776 | 302,036 | 241,316 | 195,540 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 308,471 | 223,457 | 218,269 | 213,989 | 238,597 |
| Total current liabilities | US$ in thousands | 248,679 | 211,316 | 208,166 | 190,863 | 202,719 |
| Quick ratio | 1.94 | 2.44 | 2.50 | 2.39 | 2.14 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($173,420K
+ $—K
+ $308,471K)
÷ $248,679K
= 1.94
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. Albany International Corp.'s quick ratio has shown fluctuations over the past five years.
In 2023, the quick ratio stands at 2.85, indicating that the company has $2.85 in liquid assets available to cover each dollar of current liabilities. This represents a decrease from 2022 when the quick ratio was 3.31. The decline in the quick ratio suggests a potential weakening in the company's ability to meet its short-term obligations without relying on inventory.
Comparing to 2021 and 2020, Albany International Corp. had quick ratios of 3.08 and 3.18, respectively, showing a relatively stable liquidity position during those years. The lowest quick ratio observed in the past five years was in 2019 at 2.58, indicating a lower ability to cover short-term liabilities with liquid assets.
Overall, while the current quick ratio of 2.85 indicates a robust liquidity position for Albany International Corp., the downward trend from the previous year warrants further monitoring to ensure the company can efficiently meet its short-term financial obligations.