Air Lease Corporation (AL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 460,870 | 766,418 | 1,086,500 | 1,734,160 | 317,488 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,308,000 | 844,553 | 750,573 | 635,388 | 660,189 |
| Cash ratio | 0.35 | 0.91 | 1.45 | 2.73 | 0.48 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($460,870K
+ $—K)
÷ $1,308,000K
= 0.35
The cash ratio of Air Lease Corporation has shown a declining trend over the past five years, decreasing from 2.73 in 2020 to 0.35 in 2023. The cash ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio is generally preferred as it signifies a stronger liquidity position.
The significant decrease in the cash ratio from 2020 to 2023 may raise concerns about the company's liquidity position and its ability to meet short-term obligations with its available cash resources. It is important for investors and stakeholders to closely monitor this trend and assess the reasons behind the declining cash ratio to evaluate the company's financial health and management of its cash flow resources.
Peer comparison
Dec 31, 2023