Allegiant Travel Company (ALGT)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 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 72.15 56.98 48.44 49.51
Payables turnover 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 41.04 52.80 35.17 38.64
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 — — — 10.10 43.52

Allegiant Travel's activity ratios reflect how efficiently the company manages its assets and liabilities to generate revenue.

Inventory turnover for Allegiant Travel has consistently been reported as 0.00 across all quarters, indicating that the company is not effectively turning over its inventory, which may lead to potential issues such as overstocking or slow-moving inventory.

On the other hand, the receivables turnover ratio has shown a positive trend, increasing from 21.60 in Q4 2022 to 35.48 in Q4 2023. This suggests that Allegiant Travel is improving its efficiency in collecting payments from customers, which is a positive indicator for cash flow management.

The payables turnover ratio remains at 0.00 across all quarters, indicating that Allegiant Travel is not effectively managing its payables, potentially missing out on opportunities to optimize working capital.

The working capital turnover ratio has shown a consistent increase over the quarters, from 3.69 in Q1 2022 to 26.77 in Q3 2023. This improvement suggests that Allegiant Travel is effectively utilizing its working capital to generate revenue, which is a good sign of operational efficiency.

Overall, while Allegiant Travel shows areas of strength in receivables turnover and working capital turnover, there are potential concerns related to inventory turnover and payables turnover that the company may need to address to enhance its overall efficiency in managing its resources.

Average number of days

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
Days of inventory on hand (DOH) days — — — 13.89 — 14.24 12.12 11.41 — 9.52 10.92 9.92 — 7.95 7.62 8.22 — 8.75 8.13 6.43
Days of sales outstanding (DSO) days 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 5.06 6.41 7.54 7.37
Number of days of payables days 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 8.89 6.91 10.38 9.45

Days of sales outstanding (DSO) measures how long it takes for Allegiant Travel to collect cash from its customers after making a sale. A lower DSO indicates quicker cash collection.

In Q4 2023, Allegiant Travel's DSO decreased to 10.29 days from 16.90 days in Q4 2022, showing an improvement in collecting cash from customers efficiently. However, this ratio increased in Q1 2023 to 8.61 days and then decreased again in Q2 2023 to 6.87 days before slightly rising to 6.39 days in Q3 2023.

Days of inventory on hand (DOH) is not available in the data provided, making it difficult to assess how efficiently Allegiant Travel manages its inventory levels.

The number of days of payables is not provided either, which would have helped in understanding how long Allegiant Travel takes to pay its suppliers. This information is crucial for evaluating the company's liquidity management and financial health.

Long-term

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
Fixed asset turnover 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 0.82 0.85 0.87 0.87
Total asset turnover 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 0.61 0.63 0.59 0.62

Allegiant Travel's long-term activity ratios indicate its efficiency in utilizing fixed assets and total assets to generate revenue. The fixed asset turnover ratio has shown a fluctuating trend, ranging from 0.73 to 0.83 over the past eight quarters. This ratio indicates that Allegiant Travel is generating approximately $0.73 to $0.83 in revenue for every dollar invested in fixed assets.

On the other hand, the total asset turnover ratio has been more stable, fluctuating between 0.46 to 0.52 during the same period. This ratio suggests that Allegiant Travel is generating around $0.46 to $0.52 in revenue for every dollar invested in total assets.

Overall, the fixed asset turnover ratio shows that Allegiant Travel's efficiency in utilizing its fixed assets to generate sales has been relatively consistent. However, the total asset turnover ratio indicates that the company's efficiency in utilizing all its assets to generate revenue has also been relatively stable but at a slightly lower level compared to fixed assets.