Air Lease Corporation (AL)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 476,104 | 465,350 | 455,656 | 555,925 | 464,492 | 515,734 | 580,435 | 701,537 | 780,017 | 1,116,970 | 1,033,850 | 1,512,060 | 1,108,290 | 1,893,670 | 1,232,760 | 1,352,190 | 1,757,770 | 1,262,140 | 941,990 | 753,381 |
| Total current liabilities | US$ in thousands | 1,409,550 | 1,201,340 | 2,613,480 | 1,298,310 | 1,308,000 | 1,542,370 | 1,568,920 | 834,684 | 844,553 | 754,250 | 775,653 | 679,922 | 750,573 | 681,247 | 668,554 | 583,778 | 635,388 | 541,671 | 629,660 | 626,030 |
| Current ratio | 0.34 | 0.39 | 0.17 | 0.43 | 0.36 | 0.33 | 0.37 | 0.84 | 0.92 | 1.48 | 1.33 | 2.22 | 1.48 | 2.78 | 1.84 | 2.32 | 2.77 | 2.33 | 1.50 | 1.20 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $476,104K ÷ $1,409,550K
= 0.34
The current ratio of Air Lease Corporation has fluctuated over the past few years, indicating changes in its short-term liquidity position. The ratio stood at a healthy level of around 2.0 in 2020 and 2021, indicating the company had sufficient current assets to cover its current liabilities. However, in the subsequent quarters of 2021 and 2022, the current ratio dropped below 1.5, suggesting a potential strain on the company's ability to meet its short-term obligations.
By the end of 2022 and into 2023, the current ratio fell significantly to below 1.0, indicating a potentially precarious liquidity position. This continued into 2024, reflecting a concerning trend of a decreasing ability to cover short-term liabilities with current assets.
Overall, the downward trend in the current ratio of Air Lease Corporation raises concerns about its short-term financial health and ability to meet its immediate obligations. Further analysis of the company's financial statements and operational factors may be necessary to understand the drivers behind these changes and assess the company's overall financial stability.
Peer comparison
Dec 31, 2024