Air Lease (FRA:AVLA) Interest Coverage: 18.82 (As of Dec. 2025) — 27% Above Median


FRA:AVLA Air Lease Corp FRA:AVLA
64 GF Score
Price €55.50
GF Value €45.29
! 11 Warning Signs
View Full Analysis

What is Air Lease Interest Coverage?

Air Lease FRA:AVLA 64 Interest Coverage is 18.82 as of Dec. 2025, which is 27% above its 10-year median of 14.87. GuruFocus rates FRA:AVLA with a GF Score™ of 64/100 and a GF Value™ of €45.29. The stock has 11 warning signs investors should review. Among 812 Business Services companies, Air Lease ranks better than 50.25% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Air Lease's Operating Income for the three months ended in Dec. 2025 was €204 Mil. Air Lease's Interest Expense for the three months ended in Dec. 2025 was €-11 Mil. Air Lease's interest coverage for the quarter that ended in Dec. 2025 was 18.82. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Air Lease's Interest Coverage or its related term are showing as below:

FRA:AVLA' s Interest Coverage Range Over the Past 10 Years
Min: 10.73   Med: 14.87   Max: 21.69
Current: 12.99


FRA:AVLA's Interest Coverage is ranked better than
50.25% of 812 companies
in the Business Services industry
Industry Median: 12.98 vs FRA:AVLA: 12.99

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Air Lease  (FRA:AVLA) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Air Lease Interest Coverage Related Terms


Air Lease Interest Coverage Historical Data

* Premium members only.

The historical data trend for Air Lease's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Air Lease Interest Coverage Chart

Air Lease Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.69 12.88 13.70 10.73 12.99

Air Lease Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.96 10.98 11.79 10.67 18.82

FRA:AVLA vs R, UHAL, GATX: Interest Coverage Comparison

For the Rental & Leasing Services subindustry, Air Lease's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Air Lease Interest Coverage vs Business Services Industry

For the Business Services industry and Industrials sector, Air Lease's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Air Lease's Interest Coverage falls into.


FRA:AVLA
64GF Score
Air Lease Corp FRA:AVLA
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Air Lease Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Air Lease's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Air Lease's Interest Expense was €-45 Mil. Its Operating Income was €586 Mil. And its Long-Term Debt & Capital Lease Obligation was €15,687 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*585.915/-45.09
=12.99

Air Lease's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, Air Lease's Interest Expense was €-11 Mil. Its Operating Income was €204 Mil. And its Long-Term Debt & Capital Lease Obligation was €15,687 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*204.262/-10.852
=18.82

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 18.82 mean?
Air Lease (FRA:AVLA) has a Interest Coverage of 18.82 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Air Lease and its competitors. This is 27% above median its historical median of 14.87. Over the past decade, Air Lease's Interest Coverage has ranged from 10.73 to 21.69. According to the industry distribution chart, Air Lease ranks #404 out of 812 companies in the Business Services industry, placing it in the top 49.8%.
Is Air Lease's Interest Coverage too high?
Air Lease's current Interest Coverage of 18.82 is 27% above median its 10-year median of 14.87. Over the past 10 years, this metric has ranged from a low of 10.73 to a high of 21.69. The Business Services industry median Interest Coverage is 12.98. Air Lease's value of 18.82 is 45% above this industry median. Based on the distribution chart, Air Lease ranks #404 out of 812 companies in the Business Services industry, which is above the industry midpoint. Overall, Air Lease has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Air Lease's Interest Coverage compare to R and UHAL?
According to the Business Services industry distribution chart, Air Lease ranks #404 out of 812 companies for Interest Coverage. This puts Air Lease in the upper half of its industry. The industry median Interest Coverage is 12.98. Air Lease's value of 18.82 is 45% above this benchmark. Historically, Air Lease's own Interest Coverage has ranged from 10.73 to 21.69 over the past decade. While the company's 10-year median is 14.87 vs. the industry median of 12.98, Air Lease has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air Lease's current Interest Coverage of 18.82 is 45% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Air Lease and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Lease's current Interest Coverage is 18.82, which is 27% above median its own 10-year median of 14.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Lease stock overvalued right now?
Air Lease (FRA:AVLA) has a current Interest Coverage of 18.82. The stock's GF Value™ is €45.29, compared to a current price of €55.50 — trading 22.5% above its estimated fair value. The current Interest Coverage is 18.82, which is 27% above median its 10-year median of 14.87 and 45% above the Business Services industry median of 12.98. Air Lease's overall GF Score™ is 64/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Air Lease (FRA:AVLA), the current Interest Coverage is 18.82 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Air Lease (FRA:AVLA) Overvalued in 2026?

Based on GuruFocus' analysis, Air Lease stock appears to be overvalued. The current stock price of €55.50 is trading 22.5% above its estimated GF Value™ of €45.29.

Key valuation signals for FRA:AVLA:

  • Interest Coverage: 18.82 (27% above median its 10-year median of 14.87)
  • GF Value™: €45.29 vs. price of €55.50 (22.5% above fair value)
  • GF Score™: 64/100 with 11 warning signs
  • Industry Position: 45% above the Business Services median (#404 of 812)

No single metric tells the full story. See the FRA:AVLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Air Lease Business Description

Address 2000 Avenue of the Stars, Suite 1000N, Los Angeles, CA, USA, 90067
Air Lease Corp is an aircraft leasing company based in the United States. It is engaged in the modern, fuel-efficient new technology commercial jet aircraft directly from aircraft manufacturers and leasing those aircraft to airlines throughout the world to generate attractive returns on equity. The company also sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines, and other investors, and offers fleet management services to investors and owners of aircraft portfolios for a management fee. Geographically, it derives a maximum of its revenue from the Europe and the rest from Asia Pacific, Middle East and Africa, Central America, South America, Mexico, the United States, and Canada.
64GF Score

Get the complete analysis for FRA:AVLA

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€55.50
Price
€45.29
GF Value