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AL (Air Lease) Beneish M-Score : -2.54 (As of Oct. 31, 2024)


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What is Air Lease Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Air Lease's Beneish M-Score or its related term are showing as below:

AL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.64   Med: -2.49   Max: -2.29
Current: -2.54

During the past 13 years, the highest Beneish M-Score of Air Lease was -2.29. The lowest was -2.64. And the median was -2.49.


Air Lease Beneish M-Score Historical Data

The historical data trend for Air Lease's Beneish M-Score 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 Beneish M-Score Chart

Air Lease Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.29 -2.49 -2.57 -2.49 -2.37

Air Lease Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score 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 -2.33 -2.40 -2.37 -2.30 -2.54

Competitive Comparison of Air Lease's Beneish M-Score

For the Rental & Leasing Services subindustry, Air Lease's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Air Lease's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Air Lease's Beneish M-Score falls into.



Air Lease Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Air Lease for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1.0511+0.404 * 0.9913+0.892 * 1.0949+0.115 * 0.9771
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9919+4.679 * -0.037198-0.327 * 0.9716
=-2.54

* 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.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $0 Mil.
Revenue was 667.288 + 663.31 + 716.568 + 659.364 = $2,707 Mil.
Gross Profit was 195.302 + 204.455 + 274.1 + 230.202 = $904 Mil.
Total Current Assets was $456 Mil.
Total Assets was $31,018 Mil.
Property, Plant and Equipment(Net PPE) was $27,921 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,100 Mil.
Selling, General, & Admin. Expense(SGA) was $223 Mil.
Total Current Liabilities was $1,046 Mil.
Long-Term Debt & Capital Lease Obligation was $19,679 Mil.
Net Income was 102.946 + 107.866 + 221.051 + 132.45 = $564 Mil.
Non Operating Income was 0 + 0 + 67.022 + 0 = $67 Mil.
Cash Flow from Operations was 413.813 + 371.33 + 464.574 + 401.407 = $1,651 Mil.
Total Receivables was $0 Mil.
Revenue was 672.904 + 636.142 + 601.61 + 561.334 = $2,472 Mil.
Gross Profit was 232.144 + 224.849 + 214.447 + 196.483 = $868 Mil.
Total Current Assets was $580 Mil.
Total Assets was $29,758 Mil.
Property, Plant and Equipment(Net PPE) was $26,621 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,024 Mil.
Selling, General, & Admin. Expense(SGA) was $205 Mil.
Total Current Liabilities was $1,569 Mil.
Long-Term Debt & Capital Lease Obligation was $18,896 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0 / 2706.53) / (0 / 2471.99)
=0 / 0
=1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(867.923 / 2471.99) / (904.059 / 2706.53)
=0.351103 / 0.334029
=1.0511

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (455.656 + 27921.265) / 31018.377) / (1 - (580.435 + 26621.038) / 29757.822)
=0.085158 / 0.085905
=0.9913

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=2706.53 / 2471.99
=1.0949

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1023.63 / (1023.63 + 26621.038)) / (1099.748 / (1099.748 + 27921.265))
=0.037028 / 0.037895
=0.9771

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(222.86 / 2706.53) / (205.205 / 2471.99)
=0.082342 / 0.083012
=0.9919

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((19679.063 + 1045.99) / 31018.377) / ((18895.793 + 1568.925) / 29757.822)
=0.668154 / 0.687709
=0.9716

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(564.313 - 67.022 - 1651.124) / 31018.377
=-0.037198

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Air Lease has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.


Air Lease Beneish M-Score Related Terms

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Air Lease Business Description

Traded in Other Exchanges
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. 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