Allegiant Travel Company (ALGT)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,552,560	1,054,190	885,245	1,213,820	1,135,560
Payables	US$ in thousands	62,092	54,484	58,335	43,566	34,197
Payables turnover		25.00	19.35	15.18	27.86	33.21

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,552,560K ÷ $62,092K
= 25.00

The payables turnover ratio for Allegiant Travel Company has shown fluctuations over the past five years. In December 2020, the payables turnover was 33.21, indicating that the company paid off its accounts payable 33.21 times during the year. However, by December 2021, the ratio decreased to 27.86, suggesting a slight slowdown in the payment of accounts payable.

In December 2022, the payables turnover ratio dropped significantly to 15.18, which could imply that the company took longer to pay its suppliers compared to the previous year. This may raise a concern regarding the company's liquidity or its relationships with suppliers.

The ratio increased to 19.35 by December 2023, which indicates an improvement in the speed of paying off accounts payable. This may be a positive sign of effective management of working capital or improved relationships with suppliers.

By December 2024, the payables turnover ratio further improved to 25.00, suggesting that Allegiant Travel Company managed to pay off its accounts payable more frequently during that year compared to the previous year. This could indicate better liquidity management or potentially negotiating better payment terms with suppliers.

Overall, the fluctuations in the payables turnover ratio for Allegiant Travel Company reflect changes in the company's payment practices and relationships with suppliers over the analyzed period. It is essential for stakeholders to monitor these trends to assess the company's efficiency in managing its accounts payable.