Air Lease Corporation (AL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 460,870 | 766,418 | 1,086,500 | 1,734,160 | 317,488 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,308,000 | 844,553 | 750,573 | 635,388 | 660,189 |
| Quick ratio | 0.35 | 0.91 | 1.45 | 2.73 | 0.48 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($460,870K
+ $—K
+ $—K)
÷ $1,308,000K
= 0.35
The quick ratio of Air Lease Corporation has fluctuated over the past five years. In 2023, the quick ratio decreased to 0.35 from 0.91 in 2022, indicating a decline in the company's ability to meet its short-term obligations with its most liquid assets. This could suggest potential liquidity challenges or inefficiencies in managing current liabilities.
Compared to 2021 and 2020, where the quick ratio stood at 1.45 and 2.73 respectively, the significant drop in 2023 is particularly notable, signaling a substantial weakening of the company's liquidity position. The quick ratio in 2019 was 0.48, which was relatively low but still higher than the current ratio in 2023.
Overall, the decreasing trend in the quick ratio over the years raises concerns about Air Lease Corporation's short-term liquidity management and warrants further investigation to determine the underlying reasons for the decline and potential risks to the company's financial health.
Peer comparison
Dec 31, 2023