Albany International Corporation (AIN)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 180,133 | 149,069 | 183,032 | 156,752 | 196,877 |
| Interest expense | US$ in thousands | 20,167 | 17,835 | 17,391 | 16,332 | 19,650 |
| Interest coverage | 8.93 | 8.36 | 10.52 | 9.60 | 10.02 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $180,133K ÷ $20,167K
= 8.93
Albany International Corp.'s interest coverage ratio has remained relatively stable over the past five years, ranging between 11.61 and 12.94 times. This indicates that the company's operating income continues to comfortably exceed its interest expenses, providing a substantial buffer to meet its interest obligations. The consistency in the interest coverage ratio suggests that Albany International Corp. has been effectively managing its debt levels and operational performance, maintaining a healthy ability to pay interest on its outstanding debt. Overall, the trend in the interest coverage ratio reflects a financially sound position for the company with a strong capacity to service its debt.