Air Lease Corporation (AL)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 0.51 | 0.61 | 0.50 | 0.62 |
| Quick ratio | 0.35 | 0.33 | 0.37 | 0.83 | 0.91 | 1.46 | 1.31 | 2.19 | 1.45 | 2.75 | 1.81 | 2.27 | 2.73 | 2.29 | 1.47 | 1.17 | 0.48 | 0.53 | 0.46 | 0.59 |
| Cash ratio | 0.35 | 0.33 | 0.37 | 0.83 | 0.91 | 1.46 | 1.31 | 2.19 | 1.45 | 2.75 | 1.81 | 2.27 | 2.73 | 2.29 | 1.47 | 1.17 | 0.48 | 0.53 | 0.46 | 0.59 |
Air Lease Corporation's liquidity ratios have shown significant fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has been decreasing from 2.78 in the third quarter of 2021 to 0.36 in the fourth quarter of 2023. This downward trend indicates a potential liquidity issue as the company may struggle to meet its short-term obligations.
Similarly, the quick ratio, which excludes inventory from current assets in the calculation, has also been on a downward trend, falling from 2.75 in the third quarter of 2021 to 0.35 in the fourth quarter of 2023. This further emphasizes the company's potential difficulties 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, has shown similar fluctuations as the current and quick ratios. It decreased from 2.75 in the third quarter of 2021 to 0.35 in the fourth quarter of 2023, indicating that Air Lease Corporation may have limited cash resources to meet its short-term obligations.
Overall, the declining trend in all three liquidity ratios suggests that Air Lease Corporation may be facing liquidity challenges and should closely monitor its cash flow and working capital management to ensure financial stability.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Based on the provided data, the cash conversion cycle for Air Lease Corporation has consistently been 0.00 days across the period from March 2019 to December 2023.
A cash conversion cycle of 0.00 days indicates that the company is efficiently managing its working capital, including accounts receivable, inventory, and accounts payable. This suggests that Air Lease Corporation is able to quickly convert its investments in raw materials into sales and collect cash from customers while also effectively managing its payables.
Overall, a consistently low cash conversion cycle implies that Air Lease Corporation is effectively optimizing its operations to minimize the time it takes to generate cash from its core business activities, which is a positive indicator of its financial health and efficiency in managing its working capital.