Albany International Corporation (AIN)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 144,723 161,183 177,540 178,442 178,611 167,509 178,196 183,274 181,731 185,928 176,783 175,920 178,648 170,294 164,714 169,563 167,542 177,663 193,720 193,753
Interest expense (ttm) US$ in thousands 16,613 18,239 19,481 19,637 19,608 12,713 12,854 13,681 14,000 14,706 14,646 14,931 14,891 15,063 13,571 13,176 13,584 13,928 15,673 16,481
Interest coverage 8.71 8.84 9.11 9.09 9.11 13.18 13.86 13.40 12.98 12.64 12.07 11.78 12.00 11.31 12.14 12.87 12.33 12.76 12.36 11.76

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $144,723K ÷ $16,613K
= 8.71

Albany International Corporation's interest coverage ratio has shown some fluctuations over the periods analyzed. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.

From March 31, 2020, to December 31, 2022, the interest coverage ratio remained relatively consistent, ranging between 11.76 and 12.98. This signifies that Albany International Corporation was able to cover its interest payments comfortably during this period.

However, there was a slight decrease in the interest coverage ratio in the following quarters, dropping to 9.11 by March 31, 2023, and remaining around that level in subsequent periods. This decline may indicate a potential decrease in the company's ability to cover its interest expenses from its operating income.

The subsequent quarters, ending December 31, 2024, saw a further reduction in the interest coverage ratio to 8.71. This decline may raise concerns about the company's ability to comfortably meet its interest obligations with its operating income.

In conclusion, while Albany International Corporation maintained a relatively stable interest coverage ratio for a significant period, the recent downward trend suggests a potential strain on the company's ability to cover its interest expenses. It would be advisable for stakeholders to closely monitor this metric to assess the company's financial health and ability to service its debt.