Albany International Corporation (AIN)

The solvency ratios of Albany International Corp. provide insights into the company's ability to meet its long-term financial obligations. The trend analysis of the solvency ratios over the past five years indicates the following:

1. Debt-to-assets ratio: The debt-to-assets ratio has gradually decreased from 0.30 in 2019 to 0.25 in 2023. This indicates that the company's total debt relative to its total assets has been declining, reflecting a stronger asset base to support its debt obligations.

2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has shown a decreasing trend from 0.39 in 2019 to 0.32 in 2023. This ratio signifies the proportion of the company's capital that is financed through debt, and the declining trend indicates a lower reliance on debt for funding capital investments.

3. Debt-to-equity ratio: The debt-to-equity ratio has also displayed a decreasing trend over the years, from 0.64 in 2019 to 0.48 in 2023. This ratio indicates the extent to which the company's operations are funded by debt relative to equity, and the decreasing trend reflects a stronger equity position compared to debt financing.

4. Financial leverage ratio: The financial leverage ratio, which measures the company's total assets relative to equity, has exhibited fluctuations but has remained relatively stable over the years, ranging from 1.78 in 2021 to 2.11 in 2019. This indicates the extent to which the company is using debt to finance its assets, with lower values implying lower financial risk.

Overall, the trend analysis of Albany International Corp.'s solvency ratios suggests an improved financial position in terms of debt management and capital structure over the past five years. The decreasing trend in debt ratios and the stable financial leverage ratio indicate a more sustainable and balanced approach to long-term financial obligations.

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Coverage ratios

Interest coverage reflects Albany International Corp.'s ability to meet its interest obligations from its operating income. The trend in interest coverage over the past five years has been relatively stable, ranging from 11.61 in 2019 to 12.94 in 2022. This indicates that the company has consistently generated operating income sufficient to cover its interest expenses, with a notable improvement in 2022. The average interest coverage ratio over the period is approximately 12.32, suggesting a strong ability to service its debt obligations. Overall, Albany International Corp. appears to have a healthy interest coverage ratio, signaling financial stability in meeting its interest payments.