Albany International Corporation (AIN)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.32 | 0.34 | 0.29 | 0.33 | 0.38 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $452,667K ÷ ($452,667K + $961,368K)
= 0.32
The debt-to-capital ratio of Albany International Corp. has shown a decreasing trend over the past five years, indicating an improving financial position in terms of leverage. The ratio decreased from 0.39 in 2019 to 0.32 in 2023. This suggests that the company has been relying less on debt financing relative to its total capital structure over the years.
A decreasing debt-to-capital ratio typically indicates that the company is becoming less reliant on debt to finance its operations and investments, which can be seen as a positive sign by investors and creditors. A lower ratio implies a lower financial risk and a stronger ability to weather economic downturns or unforeseen challenges.
Albany International Corp.'s consistent reduction in its debt-to-capital ratio signifies a proactive approach towards managing its capital structure and financial stability. It indicates that the company has been successful in paying down debts or increasing its equity base, leading to a healthier balance sheet position.