Air Lease Corporation (AL)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 4.25 | 4.27 | 3.85 | 4.15 | 3.86 |
Air Lease Corporation has maintained a consistent and favorable solvency position over the past 5 years, with debt-to-assets, debt-to-capital, and debt-to-equity ratios all standing at 0.00 for each year within the period. This indicates that the company has not relied heavily on debt to finance its operations and has a strong asset and capital base relative to its debt levels.
The financial leverage ratio, which measures the proportion of debt in relation to equity, has shown some fluctuation over the years but generally remained within a reasonable range. The ratio peaked at 4.27 in 2022 but remained relatively stable around the 4.00 mark in the other years. This suggests that the company has been able to effectively manage its leverage, maintaining a balance between debt and equity in its capital structure.
Overall, the solvency ratios indicate that Air Lease Corporation has a sound financial position and has been prudent in managing its debt levels relative to its assets, capital, and equity. This stability and low debt reliance bode well for the company's financial health and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.06 | 0.75 | 2.05 | 2.36 | 2.70 |
The interest coverage ratio for Air Lease Corporation has shown fluctuations over the past five years. In 2023, the interest coverage ratio improved to 2.06, indicating that the company generated approximately 2.06 times more operating income than the interest expenses it incurred during the year. This suggests that the company was in a better position to meet its interest obligations from its operations.
Comparing to the previous years, the interest coverage ratio was relatively low in 2022 at 0.75, which may have raised concerns about the company's ability to cover its interest expenses with its operating income. However, the ratio improved in 2021 to 2.05, and in 2020 to 2.36, showing a positive trend in the company's ability to cover its interest costs.
In 2019, the interest coverage ratio was 2.70, indicating that the company was comfortably able to meet its interest obligations with its operating income that year.
Overall, the varying trend in the interest coverage ratio of Air Lease Corporation over the years suggests fluctuations in the company's ability to cover its interest expenses. It is essential for investors and stakeholders to monitor this ratio to assess the company's financial health and ability to meet its debt obligations.