AZULAzul S.A.
Is it safe?
Nothing alarming, nothing pristine: comfortable debt (BBB) and big price swings.
Investment-grade balance sheet. A rule of thumb on leverage, not a credit rating.
Large price swings, high volatility. Worst drawdown -32% · now 22% below its 52-week high.
Where this answer is blind. Altman sits structurally low for utilities and pipelines; Beneish runs high for fast growers, since sales growth alone lifts it; banks and REITs are excluded.
Can AZUL take a bad year?
Azul S.A. carries $22.1B of net debt at 3.01× EBITDA: a load its earnings can carry.
Net debt · as at FY2025 · between two and four years of EBITDA, normal for a stable business
- Net debt / EBITDA
- 3.01×
Net debt / EBITDA · 2.19× a year ago · the load is going up
- Cash runway
- 0.7 years
Cash runway · burning $358M a quarter at the current rate
- Annualised volatility
- 51%
Annualised volatility · roughly twice as jumpy as the market
Details›
- Total debtFY2025
- $23.1B
- Cash and short-term investments
- $995M
- Net debt
- $22.1B
- EBITDA, trailing twelve months
- $7.33B
- Operating profit, trailing twelve months
- $4.32B
- Total debt / EBITDA
- 3.14×
- Annualised volatilitytwo years of daily moves
- 51%
- Worst drawdown on file
- −32%
- Below its 52-week high
- 22%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.