Air Lease Corporation (AL)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 32,277,900 | 32,153,800 | 31,018,400 | 30,912,400 | 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 |
| 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 |
| Financial leverage ratio | 4.29 | 4.19 | 4.24 | 4.27 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $32,277,900K ÷ $7,532,630K
= 4.29
Air Lease Corporation's financial leverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 3.95 in March 2020, decreased slightly to 3.92 in June 2020, and then increased again to 4.15 by December 2020.
Throughout the subsequent quarters, the financial leverage ratio continued to vary, showing a mix of increases and decreases. For instance, it dropped to 3.92 in March 2021, increased to 3.96 by June 2021, and reached its peak at 4.32 in September 2022.
Towards the end of the period in December 2024, the financial leverage ratio stood at 4.29. This indicates that the company's reliance on debt to finance its operations and investments increased over the years with some fluctuations in between. A higher financial leverage ratio suggests higher financial risk as the company is using more debt relative to equity which can magnify both returns and losses for shareholders.
Overall, Air Lease Corporation has maintained a relatively high financial leverage ratio above the initial level recorded in 2020, indicating a significant use of debt financing in its capital structure over the years.
Peer comparison
Dec 31, 2024