Did You Know?
The Net Leverage Ratio is a financial measurement of a business’ debt to earnings. The ratio reflects how long it would take a business to pay back debts with current earnings remaining constant. The lower the Net Leverage Ratio, the healthier the company is with respect to debt.
The executives at Atlas Air repeatedly tell investors they want to target a Net Leverage Ratio of 4.0X as a goal. At the end of 2019, the Atlas Air Net Leverage Ratio was 4.4X. Today, the Atlas Air Net Leverage Ratio is 2.5X and dropping fast, as management accelerates debt paydown. Atlas will remain profitable with an industry standard pilot contract.