Air Lease Corporation (AL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 93.20% | 93.07% | 59.94% | 94.00% | 95.25% |
| Operating profit margin | 12.71% | 21.14% | -46.05% | 19.91% | 27.34% |
| Pretax margin | 19.51% | 28.07% | -5.99% | 25.91% | 32.09% |
| Net profit margin | 15.65% | 22.89% | -4.19% | 20.91% | 25.62% |
Air Lease Corporation's profitability ratios show some fluctuations over the years. Starting with the gross profit margin, the company experienced a significant decrease from 95.25% in 2020 to 59.94% in 2022, before recovering to 93.20% in 2024. This indicates a decline in the efficiency of the company's production and pricing strategies in 2022, followed by a rebound in subsequent years.
Similarly, the operating profit margin decreased from 27.34% in 2020 to -46.05% in 2022, signifying operational challenges or inefficiencies during that year. However, there was an improvement to 12.71% in 2024, although it's still below the levels seen in 2020.
In terms of pretax margin, the company had a negative margin of -5.99% in 2022, suggesting that Air Lease Corporation incurred significant expenses relative to its revenue that year. Subsequently, there was an increase to 19.51% in 2024, indicating a recovery in the company's profitability before taxes.
Finally, the net profit margin saw a decline from 25.62% in 2020 to -4.19% in 2022, reflecting a period of loss for the company. However, there was a recovery to 15.65% in 2024, showing an improvement in the company's ability to generate profit relative to its revenue.
Overall, the profitability ratios of Air Lease Corporation indicate fluctuations in performance over the years, with challenges in 2022 but signs of recovery in subsequent years. Monitoring and analyzing these ratios will be crucial for assessing the company's financial health and performance going forward.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.08% | 1.86% | -3.76% | 1.54% | 2.19% |
| Return on assets (ROA) | 1.33% | 2.02% | -0.34% | 1.62% | 2.05% |
| Return on total capital | 17.63% | 20.43% | 6.13% | 15.04% | 18.47% |
| Return on equity (ROE) | 5.68% | 8.58% | -1.46% | 6.23% | 8.50% |
Based on the provided data, the profitability ratios of Air Lease Corporation exhibit varying trends over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA declined from 2.19% in December 31, 2020, to -3.76% in December 31, 2022, but subsequently recovered to 1.86% in December 31, 2023 and 1.08% in December 31, 2024. The negative value in 2022 indicates that the company's operating income generated was insufficient to cover its assets.
2. Return on Assets (ROA):
- The ROA also experienced fluctuations, with a decrease from 2.05% in December 31, 2020, to -0.34% in December 31, 2022, and then an increase to 2.02% in December 31, 2023, and 1.33% in December 31, 2024. The negative ROA in 2022 suggests that the company had a net loss for that year.
3. Return on Total Capital:
- The Return on Total Capital decreased from 18.47% in December 31, 2020, to 6.13% in December 31, 2022, but then rebounded to 20.43% in December 31, 2023, and 17.63% in December 31, 2024. This ratio indicates the company's ability to generate returns from both debt and equity capital.
4. Return on Equity (ROE):
- The ROE exhibited a similar pattern of decline followed by improvement, dropping from 8.50% in December 31, 2020, to -1.46% in December 31, 2022, and then rising to 8.58% in December 31, 2023, and 5.68% in December 31, 2024. The negative ROE in 2022 suggests that the company was not able to generate positive returns for its shareholders in that year.
Overall, the profitability ratios of Air Lease Corporation indicate mixed performance, with fluctuations in profitability over the years, possibly influenced by changes in operational efficiency and financial management practices.