Allegiant Travel Company (ALGT)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		35.48	57.11	53.14	42.41	21.60	27.63	24.45	21.18	27.26	9.89	6.84	4.57	5.15	7.22	6.90	9.46	72.15	56.98	48.44	49.51
DSO	days	10.29	6.39	6.87	8.61	16.90	13.21	14.93	17.23	13.39	36.91	53.39	79.84	70.86	50.58	52.86	38.58	5.06	6.41	7.54	7.37

December 31, 2023 calculation

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

Allegiant Travel's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment after making a sale. A lower DSO indicates that Allegiant is collecting payments more quickly, improving liquidity and cash flow.

Analyzing the trend over the past quarters, we observe a decreasing DSO from Q4 2022 to Q3 2023, indicating an improvement in the company's efficiency in collecting receivables. However, there was a slight increase in DSO in Q4 2023 compared to the previous quarter, which might suggest a slowdown in collections during that period.

Despite this minor increase, the current DSO of 10.29 days reflects a relatively efficient collection process for Allegiant Travel. The company seems to be managing its accounts receivable effectively, which is crucial for maintaining healthy cash flows and working capital.

It would be prudent for Allegiant to continue monitoring its DSO and take proactive measures to ensure timely collection of payments from customers to sustain its financial health and operational efficiency.