Allegiant Travel Company (ALGT)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,054,191	987,030	955,479	922,019	885,245	1,001,215	1,071,447	1,154,631	1,213,825	1,089,859	1,009,469	966,931	1,142,367	1,207,677	1,238,646	1,274,310	1,135,590	1,134,751	1,128,913	1,108,655
Inventory	US$ in thousands	-10,300	-208,066	-231,092	35,086	-8,100	39,070	35,566	36,098	-6,000	28,424	30,194	26,276	-4,300	26,305	25,856	28,700	-2,700	27,210	25,131	19,527
Inventory turnover		—	—	—	26.28	—	25.63	30.13	31.99	—	38.34	33.43	36.80	—	45.91	47.91	44.40	—	41.70	44.92	56.78

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,054,191K ÷ $-10,300K
= —

The inventory turnover for Allegiant Travel for the past eight quarters has consistently been reported as 0.00. This indicates that Allegiant Travel is not effectively managing its inventory levels in relation to its cost of goods sold. An inventory turnover ratio of 0.00 suggests that the company is not selling its inventory or that there may be issues with obsolete or overvalued inventory. It is crucial for Allegiant Travel to reevaluate its inventory management practices to improve efficiency, reduce holding costs, and enhance profitability. This stagnant inventory turnover trend warrants further investigation into the underlying reasons and prompt corrective actions by the company's management.