Albany International Corporation (AIN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,835,010 | 1,642,260 | 1,556,060 | 1,549,940 | 1,474,370 |
| Total stockholders’ equity | US$ in thousands | 961,368 | 863,049 | 873,967 | 816,066 | 698,683 |
| Financial leverage ratio | 1.91 | 1.90 | 1.78 | 1.90 | 2.11 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,835,010K ÷ $961,368K
= 1.91
Albany International Corp.'s financial leverage ratio has exhibited fluctuations over the past five years, ranging from 1.78 to 2.11. This ratio indicates the extent to which the company relies on debt financing to fund its operations and growth. A higher financial leverage ratio suggests a higher reliance on debt, which can magnify returns but also increase financial risk.
In 2023, the financial leverage ratio stands at 1.91, indicating a slight increase compared to the previous year. This may suggest that the company has slightly increased its debt levels relative to its equity, potentially to finance growth initiatives or capital projects. It's important to note that the ideal financial leverage ratio varies by industry and company circumstances, and a ratio of 1.91 should be assessed in the context of Albany International Corp.'s overall financial health and industry benchmarks. Further analysis of the company's debt structure, profitability, and cash flow trends would provide additional insights into the implications of this leverage ratio fluctuation.