Allegiant Travel Company (ALGT)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 2,512,590 2,495,887 2,499,050 2,516,577 2,509,858 2,510,405 2,505,371 2,451,408 2,301,830 2,187,165 2,086,309 1,928,895 1,707,910 1,457,587 1,199,102 860,016 990,073 1,204,585 1,440,110 1,798,522
Total current assets US$ in thousands 991,605 930,616 980,455 1,007,110 1,001,130 1,143,490 1,208,500 1,300,100 1,274,270 1,197,550 1,402,440 1,410,490 1,338,410 1,320,760 1,456,920 999,688 943,633 951,203 937,487 730,797
Total current liabilities US$ in thousands 1,277,400 1,234,560 1,322,020 1,320,670 1,199,560 1,049,700 1,067,510 1,117,260 869,831 910,089 918,236 888,216 663,045 692,774 838,107 742,340 689,345 776,894 859,037 743,904
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 —

December 31, 2024 calculation

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

Allegiant Travel Company's working capital turnover has shown significant fluctuations over the recorded periods. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better utilization of working capital.

Based on the provided data, Allegiant Travel Company experienced a sharp increase in working capital turnover from June 2020 to September 2020, reaching a peak of 18.36. However, the ratio declined steadily over the subsequent quarters, dropping to 1.94 by June 2021. This downward trend continued until March 2022 when the ratio started to recover, reaching 4.31 by June 2022.

The working capital turnover ratio continued to fluctuate between 3.69 and 7.61 from March 2022 to September 2022 before surging to 26.77 by September 2023. This notable spike could indicate a significant improvement in Allegiant Travel Company's efficiency in utilizing its working capital during that period.

However, there is missing data for the working capital turnover ratio from December 2023 onwards, making it challenging to provide a comprehensive analysis of the most recent periods. It would be beneficial to observe future data points to evaluate the company's working capital management efficiency accurately.

In conclusion, Allegiant Travel Company's working capital turnover ratio has shown both volatility and periods of notable improvement. It is essential for investors and analysts to track this ratio over time to assess the company's efficiency in managing its working capital effectively.