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.