Allegiant Travel Company (ALGT)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	34.21	34.13	31.71	—	—	—	26.28	—	25.63	30.13	31.99	—	38.34	33.43	36.80	—	45.91	47.91	44.40
Receivables turnover	27.79	40.05	32.68	34.71	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
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
Working capital turnover	—	—	—	—	—	26.77	17.77	13.41	5.69	7.61	4.31	3.69	2.53	2.32	1.94	3.34	3.89	6.91	18.36	—

Allegiant Travel Company's inventory turnover ratio has shown fluctuations over the past several periods, ranging from a high of 47.91 in June 2020 to a low of 25.63 in September 2022. Generally, higher inventory turnover is preferable as it indicates that the company is efficiently managing its inventory levels. However, the downward trend in Allegiant's inventory turnover may suggest potential issues such as overstocking or slowing sales.

In terms of receivables turnover, Allegiant's performance has varied significantly, with a notable increase from 4.57 in March 2021 to 57.11 in September 2023. A high receivables turnover ratio indicates that the company is collecting payments from customers quickly, which is a positive sign of efficient credit management.

The payables turnover ratio for Allegiant has also displayed fluctuations, with values ranging from 13.98 in March 2023 to 33.41 in December 2020. A higher payables turnover ratio suggests that the company is paying its suppliers promptly, which could indicate strong cash flow management.

Allegiant's working capital turnover ratio, reflecting how efficiently the company is utilizing its working capital to generate revenue, has shown a mixed performance. The ratio has increased over time, reaching a peak of 26.77 in September 2023. A higher working capital turnover ratio indicates that the company is effectively using its working capital to support its operations and generate sales.

Overall, analyzing these activity ratios provides valuable insights into Allegiant Travel Company's operational efficiency, inventory management, credit collection practices, supplier payment strategies, and working capital utilization.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	10.67	10.69	11.51	—	—	—	13.89	—	14.24	12.12	11.41	—	9.52	10.92	9.92	—	7.95	7.62	8.22
Days of sales outstanding (DSO)	days	13.13	9.11	11.17	10.51	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
Number of days of payables	days	14.60	16.55	21.76	22.34	18.86	20.51	24.45	26.10	24.05	18.74	21.65	18.70	13.10	11.85	20.66	14.26	10.93	19.55	15.11	17.89

Days of Inventory on Hand (DOH) Analysis:
- The DOH for Allegiant Travel Company has shown some fluctuations over the periods analyzed.
- The company's DOH ranged from a low of 7.62 days in June 2020 to a high of 14.24 days in September 2022.
- A higher DOH indicates that Allegiant Travel Company may be holding onto inventory for a longer period before selling it, which could tie up capital and increase storage costs.
- The decreasing trend in DOH from September 2022 to March 2024 suggests potential improvements in inventory management efficiency.

Days of Sales Outstanding (DSO) Analysis:
- Allegiant Travel Company's DSO has shown significant variation during the periods reviewed.
- DSO ranged from a high of 79.84 days in March 2021 to a low of 6.39 days in September 2023.
- A lower DSO indicates that the company is collecting its accounts receivable more quickly, which can improve cash flow and liquidity.
- The decreasing trend in DSO from March 2021 to September 2023 suggests an improvement in the company's credit and collection processes.

Number of Days of Payables Analysis:
- The number of days of payables for Allegiant Travel Company also displayed fluctuations over the periods analyzed.
- Payables days ranged from 10.93 days in December 2020 to 26.10 days in March 2023.
- A higher number of days of payables may indicate that the company is taking longer to pay its suppliers, which can improve cash flow but may strain supplier relationships.
- The decreasing trend from March 2023 to December 2024 suggests potential improvements in managing payables efficiently.

Overall Activity Ratio Analysis:
- Allegiant Travel Company's activity ratios reflect varying levels of efficiency in managing inventory, collecting receivables, and paying payables over time.
- The company should aim to strike a balance between these ratios to optimize working capital and enhance overall financial performance.

Long-term

	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
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
Total asset turnover	0.57	0.52	0.51	0.51	0.52	0.51	0.52	0.52	0.51	0.50	0.47	0.43	0.43	0.39	0.31	0.26	0.30	0.37	0.44	0.56

Allegiant Travel Company's fixed asset turnover ratio has been fluctuating over the years but generally trending upwards. The ratio increased from 0.81 in March 2020 to 0.82 in December 2024, indicating that the company is generating more sales relative to its fixed assets.

On the other hand, the total asset turnover ratio has shown a declining trend from 0.56 in March 2020 to 0.57 in December 2024. This suggests that Allegiant Travel Company's efficiency in generating sales from its total assets has slightly decreased over the years.

Overall, while the fixed asset turnover ratio reflects an improvement in the company's utilization of fixed assets, the declining trend in total asset turnover raises potential concerns about the company's overall asset efficiency and effectiveness in generating revenue from its total asset base.