Allegiant Travel Company (ALGT)

Working capital 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
Total current assets	US$ in thousands	1,001,130	1,274,270	1,338,410	943,633	562,221
Total current liabilities	US$ in thousands	1,212,310	869,831	663,045	689,345	612,584
Working capital turnover		—	5.69	2.53	3.89	—

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,509,860K ÷ ($1,001,130K – $1,212,310K)
= —

Allegiant Travel's working capital turnover has shown a fluctuating trend over the past five years. In 2022, the company achieved a working capital turnover of 5.69, indicating that Allegiant effectively managed its working capital to generate sales during that fiscal year. This was a significant improvement compared to the previous year, 2021, where the ratio was 2.53, suggesting a less efficient utilization of working capital.

In 2020, the working capital turnover was 3.89, reflecting a moderate efficiency in converting working capital into revenue. However, the data for 2019 and 2023 are not available, making it difficult to provide a complete trend analysis.

Overall, Allegiant Travel's performance in terms of working capital turnover has been variable, with 2022 standing out as a particularly strong year. It suggests that the company has the potential to enhance its operational efficiency by effectively managing its working capital to drive sales growth in the future.