Allegiant Travel Company (ALGT)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	143,259	284,213	152,239	317,573	229,989	240,528	396,091	403,085	363,378	193,627	418,448	301,615	152,764	268,042	272,210	138,361	121,888	88,114	453,852	243,282
Short-term investments	US$ in thousands	671,414	651,213	825,167	690,593	725,063	761,362	813,243	808,949	819,478	877,344	767,410	426,381	532,477	441,764	390,864	314,946	335,928	314,822	216,746	286,955
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
Cash ratio		0.67	0.89	0.92	0.90	1.10	1.10	1.32	1.36	1.78	1.55	1.41	0.98	0.99	0.91	0.77	0.61	0.75	0.73	1.10	0.89

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($143,259K + $671,414K) ÷ $1,212,310K
= 0.67

Allegiant Travel's cash ratio has exhibited some fluctuations over the past eight quarters. The cash ratio measures the company's ability to cover its short-term liabilities solely with cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on other current assets or external financing.

Allegiant Travel's cash ratio has ranged from a low of 0.72 in Q4 2023 to a high of 1.42 in Q1 2022. The decreasing trend in the cash ratio from Q1 2022 to Q3 2023 may suggest a potential decrease in liquidity or an increase in short-term liabilities relative to available cash.

However, it is important to note that the cash ratio remained above 1.00 for all quarters, indicating that Allegiant Travel has generally maintained a sufficient level of cash to cover its short-term obligations. This suggests a certain level of financial stability and the ability to meet immediate financial needs without relying heavily on borrowing or asset liquidation.

In conclusion, while there have been fluctuations in Allegiant Travel's cash ratio over the past eight quarters, the company has generally maintained a solid level of liquidity to meet its short-term obligations. Further monitoring of the cash ratio in conjunction with other liquidity and financial metrics can provide a more comprehensive assessment of Allegiant Travel's financial health.