Air Lease Corporation (AL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,327,690 | 1,462,600 | 407,413 | 1,054,030 | 1,121,440 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,532,630 | 7,160,040 | 6,646,360 | 7,008,570 | 6,072,340 |
| Return on total capital | 17.63% | 20.43% | 6.13% | 15.04% | 18.47% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,327,690K ÷ ($—K + $7,532,630K)
= 17.63%
Air Lease Corporation's return on total capital has exhibited fluctuations over the past five years. In December 2020, the return on total capital was recorded at 18.47%, indicating a relatively robust performance. However, this metric declined to 15.04% by December 2021, suggesting a decrease in the company's efficiency in generating returns relative to its total capital employed.
By December 2022, the return on total capital further decreased significantly to 6.13%, reflecting a notable drop in the company's ability to generate profits from its total capital base. Nonetheless, the following year saw a remarkable improvement, with the return on total capital jumping to 20.43% by December 2023, signaling a substantial recovery in performance.
In the most recent period, December 2024, the return on total capital stood at 17.63%, demonstrating a relatively strong performance compared to the previous years but below the peak achieved in December 2023. These fluctuations in return on total capital suggest varying levels of effectiveness in utilizing capital to generate profits over the years, with notable improvements and downturns observed across the analyzed period.
Peer comparison
Dec 31, 2024