Allegiant Travel Company (ALGT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 27.79 | 35.48 | 21.60 | 27.26 | 5.15 |
| Payables turnover | 25.00 | 19.35 | 15.18 | 27.86 | 33.21 |
| Working capital turnover | — | — | 5.69 | 2.53 | 3.89 |
Allegiant Travel Company's activity ratios provide insight into how efficiently the company manages its resources and assets.
1. Inventory Turnover: The inventory turnover ratio measures how effectively the company sells its inventory. The data shows that Allegiant did not provide inventory turnover numbers for the years 2020 to 2024, which may suggest that the company does not hold significant amounts of inventory relative to its sales.
2. Receivables Turnover: The receivables turnover ratio indicates how quickly the company collects payments from its customers. Allegiant's receivables turnover improved significantly from 2020 to 2023, indicating that the company has been collecting payments more efficiently over the years. However, there was a slight decrease in this ratio in 2024.
3. Payables Turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. Allegiant's payables turnover decreased from 2020 to 2022 but increased in 2023 and 2024. This could indicate changes in the company's payment terms or purchasing strategies.
4. Working Capital Turnover: The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate revenue. Allegiant's working capital turnover fluctuated over the years, with a significant decrease in 2021 followed by an increase in 2022. The lack of data for 2023 and 2024 makes it challenging to assess the company's recent performance in this area.
Overall, Allegiant Travel Company's activity ratios show mixed performance in managing its assets and operations. Further analysis and contextual information would be needed to fully understand the implications of these ratios on the company's financial health and efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 13.13 | 10.29 | 16.90 | 13.39 | 70.86 |
| Number of days of payables | days | 14.60 | 18.86 | 24.05 | 13.10 | 10.99 |
Allegiant Travel Company's Days of Inventory on Hand (DOH) data is not provided in the JSON, indicating that the company's inventory turnover and efficiency in managing inventory was not disclosed.
In terms of Days of Sales Outstanding (DSO), the company demonstrates varying collection periods over the years. In 2020, the DSO stood at 70.86 days, which improved significantly to 13.39 days by 2021. The DSO increased slightly to 16.90 days in 2022, then declined to 10.29 days in 2023 before rising to 13.13 days in 2024. This suggests that Allegiant Travel Company was able to collect its accounts receivable much faster in 2021 and 2023 compared to 2020, but saw a slight increase in 2022 and 2024.
Regarding the Number of Days of Payables, the company took 10.99 days to pay its liabilities in 2020. This figure increased to 13.10 days in 2021, then further to 24.05 days in 2022. In 2023, the days of payables decreased to 18.86 days, and in 2024 it reduced to 14.60 days. The trend suggests that Allegiant Travel Company took longer to pay its vendors in 2022 compared to 2020 and 2021, but then improved its payment period in 2023 and 2024.
Overall, an analysis of these activity ratios highlights the company's efficiency in managing receivables and payables, which are crucial aspects of its working capital cycle. Understanding these ratios can provide insights into Allegiant Travel Company's operational effectiveness and liquidity management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.82 | 0.73 | 0.82 | 0.76 | 0.48 |
| Total asset turnover | 0.57 | 0.52 | 0.51 | 0.43 | 0.30 |
The long-term activity ratios for Allegiant Travel Company show a positive trend over the years, indicating improved efficiency in utilizing its assets.
The Fixed Asset Turnover ratio, which measures how efficiently the company generates revenue from its fixed assets, has been steadily increasing from 0.48 in 2020 to 0.82 in 2022 before slightly declining to 0.73 in 2023 and then bouncing back to 0.82 in 2024. This suggests that Allegiant Travel Company has been able to generate more revenue from its fixed assets, such as aircraft and infrastructure, as time has progressed.
Similarly, the Total Asset Turnover ratio, which gauges the company's ability to generate sales from its total assets, has shown a consistent upward trajectory over the same period. Starting at 0.30 in 2020, the ratio has increased to 0.57 in 2024. This improvement indicates that Allegiant Travel Company has become more efficient in utilizing all its assets, including fixed and current assets, to generate revenue.
Overall, the increasing trends in both Fixed Asset Turnover and Total Asset Turnover ratios for Allegiant Travel Company suggest improved asset management and operational efficiency, which bodes well for the company's long-term financial performance and sustainability.