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AL (Air Lease) ROE % : 5.66% (As of Jun. 2024)


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What is Air Lease ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Air Lease's annualized net income for the quarter that ended in Jun. 2024 was $412 Mil. Air Lease's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was $7,270 Mil. Therefore, Air Lease's annualized ROE % for the quarter that ended in Jun. 2024 was 5.66%.

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

AL' s ROE % Range Over the Past 10 Years
Min: -1.42   Med: 9.29   Max: 20.14
Current: 7.95

During the past 13 years, Air Lease's highest ROE % was 20.14%. The lowest was -1.42%. And the median was 9.29%.

AL's ROE % is ranked worse than
51.39% of 1045 companies
in the Business Services industry
Industry Median: 8.24 vs AL: 7.95

Air Lease ROE % Historical Data

The historical data trend for Air Lease's ROE % 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 ROE % Chart

Air Lease Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.26 8.83 6.68 -1.42 8.90

Air Lease Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
ROE % 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 7.79 7.67 12.52 6.00 5.66

Competitive Comparison of Air Lease's ROE %

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

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

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



Air Lease ROE % Calculation

Air Lease's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=614.622/( (6646.363+7160.038)/ 2 )
=614.622/6903.2005
=8.90 %

Air Lease's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Mar. 2024 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=411.784/( (7231.871+7307.246)/ 2 )
=411.784/7269.5585
=5.66 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2024) net income data. ROE % is displayed in the 30-year financial page.


Air Lease  (NYSE:AL) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=411.784/7269.5585
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(411.784 / 2669.152)*(2669.152 / 30965.406)*(30965.406 / 7269.5585)
=Net Margin %*Asset Turnover*Equity Multiplier
=15.43 %*0.0862*4.2596
=ROA %*Equity Multiplier
=1.33 %*4.2596
=5.66 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=411.784/7269.5585
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (411.784 / 510.964) * (510.964 / 564.132) * (564.132 / 2669.152) * (2669.152 / 30965.406) * (30965.406 / 7269.5585)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8059 * 0.9058 * 21.14 % * 0.0862 * 4.2596
=5.66 %

Note: The net income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Air Lease ROE % Related Terms

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


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