Air Lease Corporation (AL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.29 | 4.25 | 4.27 | 3.85 | 4.15 |
Air Lease Corporation maintains a strong solvency position as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across all the years analyzed. This signifies that the company has minimal financial leverage and relies more on equity financing rather than debt to support its operations and growth.
Additionally, the financial leverage ratio, which measures the proportion of a company's assets that are financed by debt, shows a stable trend ranging from 3.85 to 4.29 over the years. Although this ratio has slightly fluctuated, it remains within a reasonable range and suggests that the company is effectively managing its debt levels relative to its assets.
Overall, Air Lease Corporation's solvency ratios reflect a conservative approach to financing and a solid financial position that provides a cushion against financial risks and sustains the company's long-term stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.67 | 2.06 | 0.75 | 2.05 | 2.36 |
The interest coverage ratio of Air Lease Corporation has shown some fluctuations over the years. As of December 31, 2020, the ratio was 2.36, indicating that the company generated 2.36 times the amount of earnings needed to cover its interest expenses. However, by December 31, 2022, the interest coverage ratio decreased to 0.75, signaling a significant decline in the company's ability to cover its interest payments with its operating income.
Subsequently, by December 31, 2023 and December 31, 2024, the interest coverage ratio improved to 2.06 and 1.67, respectively. These improvements suggest that Air Lease Corporation was better able to meet its interest obligations with its earnings during these periods compared to the previous year.
Overall, while there have been fluctuations in Air Lease Corporation's interest coverage ratio, the company has generally been able to cover its interest expenses with its operating income, albeit with some variability. It will be important for stakeholders to monitor this ratio closely to ensure the company's financial health and ability to meet its debt obligations.