Air Lease Corporation (AL)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 30,452,300 | 29,672,200 | 29,757,800 | 29,363,100 | 28,396,700 | 28,224,000 | 27,646,500 | 26,874,800 | 26,968,700 | 27,014,600 | 25,755,500 | 25,189,400 | 25,215,200 | 23,604,800 | 22,993,700 | 22,682,300 | 21,709,200 | 21,609,700 | 20,484,300 | 19,178,900 |
| Total stockholders’ equity | US$ in thousands | 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 | 5,623,540 | 5,462,170 | 5,299,880 | 5,173,820 |
| Financial leverage ratio | 4.25 | 4.26 | 4.34 | 4.35 | 4.27 | 4.32 | 4.29 | 4.22 | 3.85 | 4.10 | 3.96 | 3.92 | 4.15 | 3.95 | 3.92 | 3.95 | 3.86 | 3.96 | 3.87 | 3.71 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $30,452,300K ÷ $7,160,040K
= 4.25
The financial leverage ratio of Air Lease Corporation has exhibited some fluctuations over the past few quarters. The ratio has generally been above 4, indicating that the company relies more on debt financing to fund its operations and investments compared to equity.
There was a gradual increase in the financial leverage ratio from March 2021 to June 2023, reaching a peak of 4.35 in March 2023. This suggests that the company has been taking on more debt relative to its equity during this period. However, there was a slight decrease in the ratio between June 2023 and December 2023.
The trend in the financial leverage ratio indicates that Air Lease Corporation has been maintaining a relatively high level of financial leverage, which can amplify returns but also increase financial risk. It would be important for stakeholders to closely monitor the company's debt management strategies and financial health to ensure sustainability in the long term.
Peer comparison
Dec 31, 2023