Allegiant Travel Company (ALGT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 35.48 | 21.60 | 27.26 | 5.15 | 72.15 |
| Payables turnover | 19.35 | 15.18 | 27.86 | 33.21 | 40.23 |
| Working capital turnover | — | 5.69 | 2.53 | 3.89 | — |
Allegiant Travel's inventory turnover ratio has consistently been 0.00 for the past five years, indicating that the company is not efficiently managing its inventory levels or turnover. This could potentially signal issues with inventory management or slow-moving inventory.
The receivables turnover ratio has shown some fluctuations over the years, with a notable increase from 5.15 in 2020 to 35.48 in 2023. This suggests that Allegiant Travel has been able to collect its receivables more efficiently in recent years, reflecting positively on its credit and collection policies.
The payables turnover ratio for Allegiant Travel has also been consistently 0.00 for the same period, indicating that the company is not effectively managing its accounts payable or the payment of its suppliers.
The working capital turnover ratio, while not provided for all years, shows an increase from 2.53 in 2021 to 5.69 in 2022, indicating that Allegiant Travel has been generating more revenue relative to its working capital over the past two years. This suggests improved efficiency in the utilization of working capital to generate sales.
Overall, while Allegiant Travel has shown improvements in its receivables turnover and working capital turnover ratios, the company should focus on addressing its inventory turnover and payables management to enhance its overall efficiency and financial performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 10.29 | 16.90 | 13.39 | 70.86 | 5.06 |
| Number of days of payables | days | 18.86 | 24.05 | 13.10 | 10.99 | 9.07 |
Days of inventory on hand (DOH) is not provided in the data for all years, so we cannot analyze this ratio for Allegiant Travel.
Days of sales outstanding (DSO) decreased from 70.86 days in 2020 to 10.29 days in 2023, indicating an improvement in collecting accounts receivable more efficiently. This may suggest better credit policies or more prompt collection efforts by Allegiant Travel.
The number of days of payables is not provided in the data for all years, so we cannot analyze this ratio for Allegiant Travel.
Overall, based on the available data, Allegiant Travel has shown a significant improvement in its efficiency in collecting accounts receivable over the years, which can be seen from the decreasing trend in the Days of Sales Outstanding ratio.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.73 | 0.82 | 0.76 | 0.48 | 0.82 |
| Total asset turnover | 0.52 | 0.51 | 0.43 | 0.30 | 0.61 |
Allegiant Travel's long-term activity ratios indicate the efficiency of the company in utilizing its fixed assets and total assets to generate revenue over the past five years.
The fixed asset turnover ratio has shown some fluctuations over the period, with a high of 0.82 in 2022 and a low of 0.48 in 2020. In 2023, the fixed asset turnover decreased to 0.73, indicating that the company generated $0.73 in revenue for every dollar of fixed assets invested. This suggests that Allegiant Travel may have experienced some challenges in efficiently utilizing its fixed assets in the most recent year.
On the other hand, the total asset turnover ratio has also varied significantly, with a low of 0.30 in 2020 and a high of 0.61 in 2019. In 2023, the total asset turnover increased to 0.52, indicating that Allegiant Travel generated $0.52 in revenue for every dollar of total assets. This suggests an improvement in the company's ability to generate sales from its total asset base compared to the previous year.
Overall, while the fixed asset turnover ratio has shown some inconsistency, the total asset turnover ratio has exhibited an increasing trend in recent years, indicating that Allegiant Travel has been more effective in using its total assets to drive revenue.