AL (Air Lease) Gross Margin % : 29.27% (As of Jun. 2024)

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What is Air Lease Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Air Lease's Gross Profit for the three months ended in Jun. 2024 was $195 Mil. Air Lease's Revenue for the three months ended in Jun. 2024 was $667 Mil. Therefore, Air Lease's Gross Margin % for the quarter that ended in Jun. 2024 was 29.27%.

Warning Sign:

Air Lease Corp gross margin has been in long-term decline. The average rate of decline per year is -5.8%.

The historical rank and industry rank for Air Lease's Gross Margin % or its related term are showing as below:

AL' s Gross Margin % Range Over the Past 10 Years
Min: 33.4 Med: 46.17 Max: 50.11
Current: 33.4

During the past 13 years, the highest Gross Margin % of Air Lease was 50.11%. The lowest was 33.40%. And the median was 46.17%.

AL's Gross Margin % is ranked worse than
51.1% of 998 companies
in the Business Services industry
Industry Median: 34.285 vs AL: 33.40

Air Lease had a gross margin of 29.27% for the quarter that ended in Jun. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Air Lease was -5.80% per year.

Air Lease Gross Margin % Historical Data

The historical data trend for Air Lease's Gross Margin % 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.

* Premium members only.

Air Lease Gross Margin % Chart

Air Lease Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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45.45

39.84

35.60

37.04

35.80

Air Lease Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Gross Margin %	Get a 7-Day Free Trial															34.50	34.91	38.25	30.82	29.27

Competitive Comparison of Air Lease's Gross Margin %

For the Rental & Leasing Services subindustry, Air Lease's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Business Services Industry

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

* The bar in red indicates where Air Lease's Gross Margin % falls into.

Air Lease Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Air Lease's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	961.3	/	2684.977
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2684.977 - 1723.682)	/	2684.977
	=	35.80 %

Air Lease's Gross Margin for the quarter that ended in Jun. 2024 is calculated as

Gross Margin % (Q: Jun. 2024 )	=	Gross Profit (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	195.3	/	667.288
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(667.288 - 471.986)	/	667.288
	=	29.27 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Air Lease (NYSE:AL) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Air Lease had a gross margin of 29.27% for the quarter that ended in Jun. 2024 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Air Lease Gross Margin % Related Terms

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Air Lease Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Air Lease Corp (NYSE:AL) » Definitions » Gross Margin %

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 earns from revenue originates from the renting of flight equipment. Geographically it operates in Asia Pacific, Europe, The Middle East and Africa, Central America, South America and Mexico and U.S. and Canada.

Executives

Gregory B Willis	officer: SVP FINANCE AND CFO	C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 600N, LOS ANGELES CA 90067
Alex A Khatibi	officer: EVP	C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 1000N, 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
Kishore Korde	officer: EVP, Marketing	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
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
Yvette Hollingsworth Clark	director	C/O 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
Jie Chen	officer: EVP & MANAGING DIRECTOR, ASIA	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
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