Air Lease Corporation (AL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Air Lease Corporation, as indicated by the table, show consistent zeros for the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio across the reported periods. This suggests that the company operates with minimal to no debt relative to its assets, capital, and equity.
The financial leverage ratio, however, exhibits fluctuation over time, ranging from 3.71 to 4.35. A higher ratio implies a higher level of financial leverage, indicating that the company relies more on debt financing. The increase in the financial leverage ratio from December 2021 to March 2023 indicates an upward trend in leverage, potentially signaling increased reliance on debt to finance its operations and investments during that period.
Overall, the consistently low debt-related ratios suggest a healthy solvency position for Air Lease Corporation, although it is important to monitor the trend in the financial leverage ratio to understand the company's changing capital structure and potential risks associated with increased leverage.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.06 | 1.99 | 2.01 | 2.07 | 0.75 | 0.75 | 0.74 | 0.68 | 2.05 | 1.96 | 2.02 | 2.19 | 2.36 | 2.53 | 2.64 | 2.61 | 2.70 | 2.71 | 2.77 | 2.85 |
The interest coverage ratio for Air Lease Corporation has fluctuated over the past few quarters. In December 2023, the interest coverage was 2.06, indicating that the company's operating income was 2.06 times higher than its interest expense for that period. This ratio was consistent with the previous two quarters, suggesting a relatively stable financial position in terms of covering interest obligations.
However, looking back to the previous year, the interest coverage was significantly lower at 0.75 in December 2022 and remained at similar levels in the following quarters. This indicates a higher financial risk during that period, as the company's operating income was barely sufficient to cover its interest expenses.
Since then, the interest coverage has improved steadily, reaching 2.85 in June 2019. This upward trend suggests that Air Lease Corporation has been able to generate more operating income relative to its interest expenses, which is a positive sign of financial health and sustainability.
Overall, Air Lease Corporation's interest coverage has shown variability in the past but has demonstrated an improving trend recently, indicating better ability to meet its interest obligations through operating income.