Allegiant Travel Company (ALGT)

Payables 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
Cost of revenue (ttm)	US$ in thousands	1,552,087	1,219,380	1,206,413	1,135,261	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
Payables	US$ in thousands	62,092	55,296	71,937	69,486	54,484	55,476	63,995	65,936	58,335	51,394	63,558	59,140	43,566	35,386	57,143	37,767	34,197	64,674	51,286	62,460
Payables turnover		25.00	22.05	16.77	16.34	19.35	17.79	14.93	13.98	15.18	19.48	16.86	19.52	27.86	30.80	17.67	25.60	33.41	18.67	24.15	20.40

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,552,087K ÷ $62,092K
= 25.00

The payables turnover ratio for Allegiant Travel Company displays fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio indicates how efficiently the company manages its payments to suppliers and vendors.

The ratio ranged from a high of 33.41 in December 31, 2020, to a low of 13.98 in March 31, 2023. A higher payables turnover ratio implies that the company is paying off its suppliers more quickly, which can be a positive sign as it may indicate strong liquidity and good relationships with suppliers.

On the other hand, lower payables turnover ratios suggest that the company is taking more time to pay its suppliers, which could indicate liquidity issues or strained relationships with vendors. Allegiant Travel Company's payables turnover experienced a gradual decline from June 30, 2022, to December 31, 2024, hovering around mid to high teens.

It is essential for Allegiant Travel Company to monitor its payables turnover ratio regularly to ensure that it strikes a balance between optimizing cash flow and maintaining healthy relationships with its suppliers. Any significant deviations from the industry average or historical levels should be investigated to understand the underlying factors influencing the ratio.