Air Lease Corporation (AL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 93.07% | 59.94% | 94.00% | 95.25% | 93.87% |
| Operating profit margin | 21.14% | -46.05% | 19.91% | 27.34% | 30.35% |
| Pretax margin | 28.07% | -5.99% | 25.91% | 32.09% | 36.48% |
| Net profit margin | 22.89% | -4.19% | 20.91% | 25.62% | 29.11% |
Air Lease Corporation's profitability ratios show fluctuating trends over the past five years. The gross profit margin has generally been high, ranging from 59.94% to 95.25%, with a notable dip in 2022. This ratio measures the company's ability to generate profit after accounting for the cost of goods sold.
The operating profit margin has varied significantly, from a negative figure in 2022 to positive margins in other years. This ratio indicates the company's efficiency in managing its operating expenses relative to its revenue.
Similarly, the pretax margin and net profit margin have shown fluctuating patterns, with both metrics experiencing negative figures in 2022. The pretax margin reflects the company's profitability before accounting for taxes, while the net profit margin represents the overall profitability after taxes and other expenses.
Overall, Air Lease Corporation's profitability ratios suggest that the company has experienced volatility in its financial performance over the past five years, with a particularly challenging year in 2022. Investors and analysts may want to further investigate the factors contributing to these fluctuations to assess the company's long-term profitability prospects.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.86% | -3.76% | 1.54% | 2.19% | 2.82% |
| Return on assets (ROA) | 2.02% | -0.34% | 1.62% | 2.05% | 2.70% |
| Return on total capital | 20.43% | 6.13% | 15.04% | 18.47% | 20.80% |
| Return on equity (ROE) | 8.58% | -1.46% | 6.23% | 8.50% | 10.44% |
Based on the profitability ratios of Air Lease Corporation for the past five years, we can observe the following trends:
1. Operating return on assets (Operating ROA):
- There has been a fluctuating trend in the operating ROA over the five-year period, with a high of 2.82% in 2019 and a low of -3.76% in 2022. The recent value of 1.86% in 2023 indicates a moderate profitability level from the company's core operations relative to its asset base.
2. Return on assets (ROA):
- The ROA also shows variability over the years, with a peak of 2.70% in 2019 and a low of -0.34% in 2022. The 2023 ROA of 2.02% suggests that the company generated a positive net income relative to its total assets during the year.
3. Return on total capital:
- The return on total capital has seen fluctuations, with a notable increase in 2023 to 20.43%, showcasing the company's ability to generate profits from both equity and debt sources. This ratio indicates an improvement in the efficiency of capital utilization compared to the previous years.
4. Return on equity (ROE):
- The ROE also experienced variability, with a peak of 10.44% in 2019 and a low of -1.46% in 2022. The 2023 ROE of 8.58% signals a return to positive profitability for shareholders' equity, although it remains below the levels seen in prior years.
In summary, Air Lease Corporation's profitability ratios have shown mixed performance over the past five years, with some years demonstrating strong profitability metrics while others were weaker. The recent improvements in return on total capital are promising, but the company may need to further enhance its operational and financial performance to sustain and build upon its profitability in the future.