Allegiant Travel Company (ALGT)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	1,840,963	1,792,004	1,748,604	1,693,625
Total current assets	US$ in thousands	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	562,221	525,427	780,247	633,946
Total current liabilities	US$ in thousands	1,212,310	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	612,584	549,253	607,153	595,033
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	—	—	—	10.10	43.52

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,509,858K ÷ ($1,001,130K – $1,212,310K)
= —

Allegiant Travel's working capital turnover has shown a positive trend over the past eight quarters, indicating an improvement in the company's efficiency in managing its working capital. The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate revenue.

In Q1 2022, the working capital turnover was 3.69, indicating that Allegiant Travel generated $3.69 in revenue for every dollar of working capital invested during that period. This ratio showed a steady increase in subsequent quarters, with significant spikes in Q2 and Q3 2023 reaching 17.77 and 26.77, respectively.

This improvement suggests that Allegiant Travel has been able to optimize its working capital management, potentially by streamlining operations, improving inventory turnover, or better managing accounts receivable and accounts payable. A higher working capital turnover ratio generally signifies a more efficient use of resources, which can lead to increased profitability and sustainability for the company.

Overall, the positive trend in Allegiant Travel's working capital turnover reflects its ability to generate more revenue from its working capital, highlighting improved operational efficiency and financial performance over the analyzed period.