Air Lease Corporation (AL)

Air Lease Corporation's liquidity ratios have shown a declining trend over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, decreased from 2.77 in December 2020 to 0.34 in December 2024. This indicates a significant decrease in the company's liquidity position over the period.

Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, followed a similar downward trajectory from 2.73 in December 2020 to 0.34 in December 2024. This suggests that the company may be facing challenges in meeting its short-term obligations without relying on inventory.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents to cover current liabilities, also dropped from 2.73 in December 2020 to 0.34 in December 2024. This indicates a significant decrease in the company's ability to meet its short-term obligations with readily available cash.

Overall, the declining trend in Air Lease Corporation's liquidity ratios raises concerns about its short-term financial health and ability to meet its obligations as they come due. Investors and stakeholders may need to closely monitor the company's liquidity position and management's strategies to address these challenges.

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Additional liquidity measure

The cash conversion cycle for Air Lease Corporation has consistently been 0.00 days for the years 2020 to 2024. This indicates that the company is efficiently managing its cash flows in the operating cycle by efficiently converting its investments in inventory and receivables into cash. The company may be effectively managing its working capital and effectively collecting receivables, resulting in a swift cash conversion cycle. This can be a positive indicator of the company's operational efficiency and financial health.