Air Lease Corporation (AL)

Air Lease Corporation's liquidity ratios, including the current ratio, quick ratio, and cash ratio, have shown fluctuations over the last five years. The current ratio has decreased from 2.77 in 2020 to 0.36 in 2023, indicating a significant decline in the company's ability to cover its short-term obligations with current assets.

Similarly, the quick ratio and cash ratio have followed a similar trend, decreasing from 2.73 to 0.35 and 0.48 to 0.35, respectively, over the same period. These ratios measure the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory, which shows a diminishing capacity to cover immediate liabilities.

Overall, the decreasing trend in all three liquidity ratios suggests that Air Lease Corporation may be facing challenges in managing its short-term liquidity effectively. It indicates a potential risk of liquidity problems or difficulties in meeting its short-term financial obligations in the near future. Management should closely monitor and address these liquidity concerns to ensure the company's financial stability and sustainability in the long run.

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Additional liquidity measure

Based on the data provided, Air Lease Corporation has consistently maintained a cash conversion cycle of 0.00 days over the past five years. This indicates that the company is able to efficiently manage its working capital, from the time it takes to pay suppliers to the time it receives cash from customers, resulting in a swift turnover of cash and minimal idle cash sitting on its balance sheet. A cash conversion cycle of 0.00 days suggests that the company is effectively balancing its accounts payable and accounts receivable processes, which can contribute to improved liquidity and operational efficiency.