Air Lease (Air Lease) Interest Coverage : 15.62 (As of Dec. 2023)

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What is Air Lease Interest Coverage?

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. 2023 was $213 Mil. Air Lease's Interest Expense for the three months ended in Dec. 2023 was $-14 Mil. Air Lease's interest coverage for the quarter that ended in Dec. 2023 was 15.62. 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:

AL' s Interest Coverage Range Over the Past 10 Years
Min: 11.69 Med: 16.14 Max: 21.69
Current: 13.7

AL's Interest Coverage is ranked better than
51.2% of 789 companies
in the Business Services industry
Industry Median: 13.39 vs AL: 13.70

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 Interest Coverage Historical Data

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.

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Air Lease Interest Coverage Chart

Air Lease Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

21.05

16.03

11.69

12.88

13.70

Air Lease Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															12.07	13.11	13.01	13.05	15.62

Competitive Comparison of Air Lease's Interest Coverage

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's Interest Coverage Distribution in the 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.

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. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Air Lease's Interest Expense was $-54 Mil. Its Operating Income was $741 Mil. And its Long-Term Debt & Capital Lease Obligation was $19,183 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	740.665	/	-54.053
	=	13.70

Air Lease's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Air Lease's Interest Expense was $-14 Mil. Its Operating Income was $213 Mil. And its Long-Term Debt & Capital Lease Obligation was $19,183 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	213.016	/	-13.639
	=	15.62

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

Air Lease (NYSE:AL) 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

Thank you for viewing the detailed overview of Air Lease's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Air Lease (Air Lease) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Air Lease Corp (NYSE:AL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ALpA.PFD:USA AVLA:Germany

Address

2000 Avenue of the Stars, Suite 1000N, Los Angeles, CA, USA, 90067

Website

https://www.airleasecorp.com

Air Lease Corp is an aircraft leasing company based in the United States. However, it derives its revenue from the Asia region. Its business involves purchasing aircraft from renowned manufacturers such as The Boeing Company (Boeing) and Airbus S.A.S and leasing them to airline companies across the world. Its suite of aircraft entails single-aisle narrow-bodied jets and twin-aisle wide-bodied aircraft. The company's primary source of revenue originates from the leasing of aircraft and to a certain extent from the provision of fleet management services to investors and owners of aircraft portfolios.

Executives

Alex A Khatibi	officer: EVP	C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 1000N, LOS ANGELES CA 90067
Yvette Hollingsworth Clark	director	C/O 2000 AVENUE OF THE STARS, SUITE 1000N, LOS ANGELES CA 90067
Gregory B Willis	officer: SVP FINANCE AND CFO	C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 600N, LOS ANGELES CA 90067
Grant A Levy	officer: EVP, GENL. COUNSEL & SECRETARY	C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 1000N, LOS ANGELES CA 90067
Steven F Udvar-hazy	director, officer: Chairman and CEO	C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 1000N, LOS ANGELES CA 90067
Kishore Korde	officer: EVP, Marketing	2000 AVENUE OF THE STARS, SUITE 1000N, LOS ANGELES CA 90067
Jie Chen	officer: EVP & MANAGING DIRECTOR, ASIA	C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 1000N, LOS ANGELES CA 90067
John L Plueger	director, officer: PRESIDENT AND COO	C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 1000N, LOS ANGELES CA 90067
Marshall O Larsen	director	870 WINTER STREET, WALTHAM MA 02451
Cheryl Gordon Krongard	director	LEGG MASON, INC., 100 INTERNATIONAL DRIVE, BALTIMORE MD 21202
Susan Mccaw	director	LIONSGATE, 2700 COLORADO AVENUE, SANTA MONICA CA 90404
Marc H Baer	other: EVP	C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 1000N, LOS ANGELES CA 90067
Carol Hyland Forsyte	officer: EVP, GC, Corp Secretary & CCO	C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 1000N, LOS ANGELES CA 90067
John D Poerschke	officer: SVP	C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 1000N, LOS ANGELES CA 90067
Ian M Saines	director	C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 1000N, LOS ANGELES CA 90067