Allegiant Travel Company (ALGT)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,512,590	2,495,887	2,499,050	2,516,577	2,509,858	2,510,405	2,505,371	2,451,408	2,301,830	2,187,165	2,086,309	1,928,895	1,707,910	1,457,587	1,199,102	860,016	990,073	1,204,585	1,440,110	1,798,522
Property, plant and equipment	US$ in thousands	3,069,950	3,448,720	3,493,400	3,523,340	3,430,100	3,328,120	3,176,520	2,946,940	2,810,690	2,738,520	2,555,330	2,427,180	2,259,510	2,147,990	2,116,620	2,072,210	2,050,310	2,004,830	2,076,450	2,210,720
Fixed asset turnover		0.82	0.72	0.72	0.71	0.73	0.75	0.79	0.83	0.82	0.80	0.82	0.79	0.76	0.68	0.57	0.42	0.48	0.60	0.69	0.81

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,512,590K ÷ $3,069,950K
= 0.82

Fixed asset turnover is a measure of a company's efficiency in generating sales from its fixed assets. In the case of Allegiant Travel Company, the trend in fixed asset turnover has been fluctuating over the past few years. The ratio decreased from 0.81 as of March 31, 2020, to a low of 0.42 as of March 31, 2021, indicating a decline in the company's ability to generate revenue from its fixed assets.

However, there was an uptick in fixed asset turnover from March 31, 2021, to December 31, 2021, reaching a level of 0.76. Subsequently, the ratio remained relatively stable around this level, ranging between 0.71 and 0.83 from March 31, 2024, to December 31, 2024. This suggests that Allegiant Travel Company has been able to improve its efficiency in utilizing fixed assets to generate sales in recent years.

Overall, while there have been fluctuations in fixed asset turnover, the company seems to have made progress in optimizing the use of its fixed assets to drive revenue growth. Further monitoring of this ratio will be important to assess the company's continued performance in this aspect.