Albany International Corporation (AIN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,648,700 | 1,835,010 | 1,642,260 | 1,556,060 | 1,549,940 |
| Total stockholders’ equity | US$ in thousands | 943,538 | 961,368 | 863,049 | 873,967 | 816,066 |
| Financial leverage ratio | 1.75 | 1.91 | 1.90 | 1.78 | 1.90 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,648,700K ÷ $943,538K
= 1.75
The financial leverage ratio of Albany International Corporation has demonstrated some variability over the past five years. The ratio was 1.90 at the end of 2020 and remained relatively stable in 2022 at 1.90 as well. However, there was a slight decrease to 1.78 at the end of 2021. In 2023 and 2024, the ratio increased to 1.91 and then decreased to 1.75, respectively.
A financial leverage ratio of less than 2 indicates that the company relies more on equity financing rather than debt financing to fund its operations and investments. This can be seen as a positive sign as it signifies a lower level of financial risk due to lower debt obligations.
Overall, the fluctuations observed in Albany International Corporation's financial leverage ratio suggest changes in the company's capital structure over the years. It is important for the company to maintain a balance between debt and equity to support its growth and profitability in the long term.