Air Lease Corporation (AL)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 427,704 | 614,622 | -97,024 | 436,632 | 516,264 |
| Total stockholders’ equity | US$ in thousands | 7,532,630 | 7,160,040 | 6,646,360 | 7,008,570 | 6,072,340 |
| ROE | 5.68% | 8.58% | -1.46% | 6.23% | 8.50% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $427,704K ÷ $7,532,630K
= 5.68%
Analyzing Air Lease Corporation's return on equity (ROE) from 2020 to 2024, the trend indicates fluctuations in the company's profitability relative to shareholders' equity. In 2020, the ROE stood at 8.50%, showing a decent return for shareholders. However, in 2021, the ROE decreased to 6.23%, indicating a potential decrease in the company's ability to generate profit from its equity.
The following year, in 2022, the ROE turned negative to -1.46%, signaling a concerning situation where the company's net income is not sufficient to cover shareholders' equity. This may raise red flags for investors and analysts alike.
Fortunately, there was a recovery in 2023, with the ROE rebounding to 8.58%, which may suggest improved profitability and efficiency in utilizing shareholders' equity. However, in 2024, the ROE decreased slightly to 5.68%, indicating a potential dip in profitability compared to the previous year.
Overall, the analysis of Air Lease Corporation's ROE showcases a mixed performance over the years, with fluctuations that may warrant further investigation into the company's financial management and operational efficiency to ensure sustainable profitability for shareholders.
Peer comparison
Dec 31, 2024