Albany International Corporation (AIN)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 133,702 | 181,087 | 149,660 | 176,843 | 150,763 |
| Interest expense | US$ in thousands | 16,613 | 20,167 | 14,000 | 14,891 | 13,584 |
| Interest coverage | 8.05 | 8.98 | 10.69 | 11.88 | 11.10 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $133,702K ÷ $16,613K
= 8.05
Albany International Corporation's interest coverage ratio provides insights into the company's ability to meet its interest obligations. The trend over the specified years indicates a relatively stable performance, with the interest coverage ratio ranging from 8.05 to 11.88. Generally, a higher interest coverage ratio indicates a better ability to meet interest payments using operating income.
In 2020, the interest coverage ratio was 11.10, suggesting that Albany International Corporation generated sufficient operating income to cover its interest expenses comfortably. The ratio improved slightly in 2021 to 11.88, reflecting a stronger ability to meet interest obligations.
However, in subsequent years, the interest coverage ratio declined, reaching 10.69 in 2022, 8.98 in 2023, and further dropping to 8.05 in 2024. These decreases indicate a potential weakening in the company's ability to cover interest expenses from operating income. It is important for stakeholders to monitor this trend as declining interest coverage ratios may raise concerns about the company's financial health and ability to service debt obligations effectively.