Albany International Corporation (AIN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 180,133 | 149,069 | 183,032 | 156,752 | 196,877 |
| Long-term debt | US$ in thousands | 452,667 | 439,000 | 350,000 | 398,000 | 424,009 |
| Total stockholders’ equity | US$ in thousands | 961,368 | 863,049 | 873,967 | 816,066 | 698,683 |
| Return on total capital | 12.74% | 11.45% | 14.95% | 12.91% | 17.54% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $180,133K ÷ ($452,667K + $961,368K)
= 12.74%
Albany International Corp.'s return on total capital has gradually decreased from 17.13% in 2019 to 11.86% in 2023. This downward trend indicates a declining ability of the company to generate profits relative to its total invested capital over the years. The decrease in return on total capital could be attributed to various factors such as increased operating expenses, lower profitability, or inefficient utilization of capital. It is essential for the company to closely evaluate and address the underlying causes of this trend to improve its financial performance and increase returns for its investors.