Allegiant Travel Company (ALGT)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	10.67	10.69	11.51	—	—	—	13.89	—	14.24	12.12	11.41	—	9.52	10.92	9.92	—	7.95	7.62	8.22
Days of sales outstanding (DSO)	days	13.13	9.11	11.17	10.51	10.29	6.39	6.87	8.61	16.90	13.21	14.93	17.23	13.39	36.91	53.39	79.84	70.86	50.58	52.86	38.58
Number of days of payables	days	14.60	16.55	21.76	22.34	18.86	20.51	24.45	26.10	24.05	18.74	21.65	18.70	13.10	11.85	20.66	14.26	10.93	19.55	15.11	17.89
Cash conversion cycle	days	-1.47	3.23	0.10	-0.31	-8.58	-14.12	-17.58	-3.61	-7.15	8.72	5.39	9.95	0.29	34.58	43.64	75.50	59.94	38.98	45.37	28.91

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 13.13 – 14.60
= -1.47

The cash conversion cycle of Allegiant Travel Company fluctuated over the years from a high of 75.50 days on March 31, 2021, to a low of -17.58 days on June 30, 2023. A negative value in the cash conversion cycle typically indicates that the company is efficiently managing its working capital and converting its inventory into cash quickly.

Allegiant Travel Company's cash conversion cycle improved significantly towards the end of 2022 and remained relatively stable throughout 2023 and 2024. The company managed to operate with negative cash conversion cycles during this period, reflecting strong efficiency in managing its cash flows, inventory turnover, and payment collections.

Overall, the trend in Allegiant Travel Company's cash conversion cycle indicates effective working capital management and a streamlined cash flow process, which is favorable for the company's liquidity and financial health.