Air Lease Corporation (AL)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,462,600 | 407,413 | 1,054,030 | 1,121,440 | 1,169,700 |
| Interest expense | US$ in thousands | 708,963 | 546,178 | 513,016 | 474,758 | 434,011 |
| Interest coverage | 2.06 | 0.75 | 2.05 | 2.36 | 2.70 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,462,600K ÷ $708,963K
= 2.06
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 from 0.75 in 2022. This indicates that the company's ability to cover its interest expenses with its operating income has strengthened, reflecting a healthier financial position. However, it is important to note that the interest coverage ratio was higher in 2019 and 2020, at 2.70 and 2.36 respectively, indicating stronger financial performance during those years. The 2021 ratio of 2.05 falls between the 2020 and 2022 figures. Overall, while the recent improvement in the interest coverage ratio is positive, it is essential for Air Lease Corporation to maintain a consistently strong ratio to ensure its ability to meet its interest obligations in the long term.
Peer comparison
Dec 31, 2023