Allegiant Travel Company (ALGT)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	991,605	1,001,130	1,274,270	1,338,410	943,633
Total current liabilities	US$ in thousands	1,277,400	1,199,560	869,831	663,045	689,345
Current ratio		0.78	0.83	1.46	2.02	1.37

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $991,605K ÷ $1,277,400K
= 0.78

Allegiant Travel Company's current ratio has displayed fluctuations over the past five years. In December 2020, the company's current ratio was 1.37, indicating that it had $1.37 in current assets to cover every $1 in current liabilities. By December 2021, the current ratio improved to 2.02, suggesting a stronger liquidity position with $2.02 in current assets for every $1 in current liabilities.

However, in December 2022, the current ratio decreased to 1.46, still reflecting a healthy liquidity position but not as robust as the prior year. The ratio then sharply declined to 0.83 by December 2023, signaling a potential liquidity strain as current assets may not be sufficient to cover current liabilities adequately.

The trend continued to worsen in December 2024, with a further decrease in the current ratio to 0.78. This sharp drop may raise concerns about Allegiant Travel Company's ability to meet its short-term obligations using its current assets alone.

Overall, the fluctuating current ratio of Allegiant Travel Company over the analyzed period suggests varying levels of liquidity and potential financial stability challenges that may require further investigation and management attention.