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.