Allegiant Travel Company (ALGT)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		35.48	21.60	27.26	5.15	72.15
DSO	days	10.29	16.90	13.39	70.86	5.06

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 35.48
= 10.29

The days of sales outstanding (DSO) ratio for Allegiant Travel has fluctuated over the past five years, indicating varying efficiency in collecting accounts receivable.

In 2023, Allegiant Travel's DSO decreased significantly to 10.29 days from 16.90 days in 2022. This indicates that the company was able to collect its accounts receivable more quickly in 2023 compared to the previous year.

In 2022, there was a slight improvement in DSO compared to 2021, suggesting better accounts receivable management during that period.

In 2021, DSO was 13.39 days, showing a moderate increase from 2020. This might indicate that Allegiant faced challenges in collecting outstanding sales within a shorter timeframe.

The DSO ratio spiked significantly in 2020 to 70.86 days, indicating a major delay in collecting payments from customers. This could be attributed to external factors affecting revenue collection during that time.

In 2019, the DSO ratio was at its lowest at 5.06 days, reflecting a very efficient collection process where sales were quickly converted to cash.

Overall, the trend in DSO for Allegiant Travel suggests fluctuations in accounts receivable collection efficiency over the years, with 2023 showing a marked improvement in this aspect compared to previous years.