Albany International Corporation (AIN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 133,702 | 181,087 | 149,660 | 176,843 | 150,763 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 943,538 | 961,368 | 863,049 | 873,967 | 816,066 |
| Return on total capital | 14.17% | 18.84% | 17.34% | 20.23% | 18.47% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $133,702K ÷ ($—K + $943,538K)
= 14.17%
Albany International Corporation's return on total capital has shown fluctuations over the past five years. The ratio increased from 18.47% in December 2020 to 20.23% in December 2021, indicating an improvement in the company's ability to generate returns from its total capital. However, there was a slight decline in the ratio to 17.34% in December 2022, suggesting a decrease in efficiency in utilizing total capital.
Subsequently, the return on total capital increased to 18.84% in December 2023, demonstrating a recovery in performance. Nevertheless, there was a significant decrease in the ratio to 14.17% in December 2024, signaling a potential decline in the company's profitability relative to its total capital.
Overall, Albany International Corporation's return on total capital has varied between 14.17% and 20.23% over the past five years, indicating fluctuations in the company's ability to generate returns from its total capital. Further analysis of the company's financial performance and capital management practices may be necessary to understand the factors influencing these changes in the return on total capital ratio.