Allegiant Travel Company (ALGT)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 2,512,590 2,509,860 2,301,830 1,707,910 990,073
Total current assets US$ in thousands 991,605 1,001,130 1,274,270 1,338,410 943,633
Total current liabilities US$ in thousands 1,277,400 1,199,560 869,831 663,045 689,345
Working capital turnover — — 5.69 2.53 3.89

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,512,590K ÷ ($991,605K – $1,277,400K)
= —

Allegiant Travel Company's working capital turnover has shown some fluctuations over the years. In 2020, the company's working capital turnover was 3.89, indicating that Allegiant Travel effectively utilized its working capital to generate sales. However, in 2021, the ratio decreased to 2.53, suggesting that the company may have had some inefficiencies in managing its working capital that year.

The following year, in 2022, the working capital turnover improved significantly to 5.69, signaling that Allegiant Travel Company became more efficient in converting its working capital into revenue. Unfortunately, the data is unavailable for 2023 and 2024, so it's challenging to provide a complete analysis for those years.

Overall, Allegiant Travel Company's working capital turnover has demonstrated varying levels of efficiency in utilizing its working capital to support its operations and generate sales. It is essential for the company to continue monitoring and improving this ratio to ensure optimal management of its working capital resources in the future.