Allegiant Travel Company (ALGT)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,509,860	2,301,830	1,707,910	990,073	1,840,960
Receivables	US$ in thousands	70,743	106,578	62,659	192,215	25,516
Receivables turnover		35.48	21.60	27.26	5.15	72.15

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,509,860K ÷ $70,743K
= 35.48

The receivables turnover ratio for Allegiant Travel has exhibited varying trends over the past five years. In 2023, the ratio significantly increased to 35.48 times, indicating that the company collected its accounts receivable 35.48 times during the year. This represents a substantial improvement from 2022 when the ratio was 21.60 times.

The sharp increase in receivables turnover from 2022 to 2023 suggests that Allegiant Travel was more efficient in collecting its outstanding receivables in 2023. It implies that the company was able to convert its accounts receivable into cash more rapidly, which is generally a positive sign for liquidity and cash flow management.

Comparing the 2023 ratio to 2021 and 2020, where the ratios were 27.26 times and 5.15 times, respectively, reveals an increasing trend in receivables turnover over the past three years. The significant increase from 2020 to 2021 and a further increase to 2023 indicate that Allegiant Travel has been improving its collection efficiency over time.

However, it is worth noting the exceptionally high receivables turnover ratio of 72.15 times in 2019, which may have been influenced by specific factors unique to that year. Overall, the recent improvement in the receivables turnover ratio suggests that Allegiant Travel has been effectively managing its accounts receivable and converting them into cash at a faster rate, which bodes well for the company's financial health.