Allegiant Travel Company (ALGT)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	285,892	143,259	229,989	363,378	152,764
Short-term investments	US$ in thousands	495,234	671,414	725,063	819,478	532,477
Total current liabilities	US$ in thousands	1,277,400	1,199,560	869,831	663,045	689,345
Cash ratio		0.61	0.68	1.10	1.78	0.99

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($285,892K + $495,234K) ÷ $1,277,400K
= 0.61

The cash ratio is a financial metric that measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. For Allegiant Travel Company, we observe the following trend in the cash ratio over the years:

- As of December 31, 2020, the cash ratio was 0.99, indicating that the company had almost enough cash to cover its short-term liabilities.
- By December 31, 2021, the cash ratio improved significantly to 1.78, suggesting that the company had a higher level of cash to meet its short-term obligations.
- However, by December 31, 2022, the cash ratio decreased to 1.10, reflecting a reduction in the company's ability to cover its short-term liabilities with cash on hand.
- The cash ratio further declined to 0.68 by December 31, 2023, indicating a potential liquidity challenge for Allegiant Travel Company.
- As of December 31, 2024, the cash ratio dropped to 0.61, which may raise concerns about the company's liquidity position and its ability to satisfy short-term obligations solely with its available cash reserves.

Overall, the fluctuating trend in Allegiant Travel Company's cash ratio suggests the importance of closely monitoring the company's liquidity position and cash management practices to ensure it can meet its short-term financial obligations effectively.