Air Lease financial leverage is the degree to which the firm utilises its fixed-income securities. Companies with high leverage are usually considered to be at financial risk. Air Lease financial risk is the risk to Air Lease stockholders that is caused by an increase in debt. In other words with a high degree of financial leverage come high interest payments which usually reduces Earnings Per Share (EPS). Check also analysis of Air Lease Fundamentals Over Time.
The company reports 11.09B of total liabilities with total debt to equity ratio (D/E) of 247.7 which implies that the company may not be able to produce enough cash to satisfy its debt commitments. Air Lease Corporation has Current Ratio of 0.78 implying that it has not enough working capital to pay out debt commitments in time.
Correlation analysis and pair trading evaluation for Air Lease and eHi Car Services. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return