Air Lease Corporation (AL)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,327,685 | 1,458,157 | 1,450,944 | 1,469,678 | 1,462,598 | 1,341,165 | 1,274,032 | 1,201,603 | 407,413 | 397,496 | 385,922 | 349,253 | 1,054,031 | 999,154 | 1,009,052 | 1,065,235 | 1,121,436 | 1,181,688 | 1,217,517 | 1,186,733 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,532,630 | 7,675,700 | 7,307,250 | 7,231,870 | 7,160,040 | 6,961,050 | 6,852,650 | 6,744,590 | 6,646,360 | 6,528,430 | 6,439,630 | 6,369,580 | 7,008,570 | 6,583,780 | 6,501,720 | 6,428,210 | 6,072,340 | 5,977,320 | 5,869,800 | 5,736,370 |
| Return on total capital | 17.63% | 19.00% | 19.86% | 20.32% | 20.43% | 19.27% | 18.59% | 17.82% | 6.13% | 6.09% | 5.99% | 5.48% | 15.04% | 15.18% | 15.52% | 16.57% | 18.47% | 19.77% | 20.74% | 20.69% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,327,685K ÷ ($—K + $7,532,630K)
= 17.63%
Air Lease Corporation's return on total capital has displayed fluctuations over the past few years. Starting at a relatively high level of 20.69% in March 31, 2020, the ratio remained fairly stable around the 20% mark until decreasing gradually. By March 31, 2022, the return on total capital plummeted to 5.48%, showcasing a significant decline.
However, from the first quarter of 2023 onwards, the return on total capital began to recover, showing an upward trend. By the end of December 31, 2024, the ratio stood at 17.63%, indicating a partial recovery compared to earlier periods.
The fluctuation in return on total capital suggests varying levels of efficiency in generating returns from the total capital employed by the company. Monitoring this metric is crucial for investors and analysts to assess the company's ability to generate profits relative to the capital invested.
Peer comparison
Dec 31, 2024