Allegiant Travel Company (ALGT)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,001,130	1,274,270	1,338,410	943,633	562,221
Total current liabilities	US$ in thousands	1,212,310	869,831	663,045	689,345	612,584
Current ratio		0.83	1.46	2.02	1.37	0.92

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,001,130K ÷ $1,212,310K
= 0.83

The current ratio of Allegiant Travel has shown a fluctuating trend over the past five years. In 2023, the current ratio decreased to 0.83 from 1.46 in 2022, indicating a significant decline in the company's short-term liquidity position. This decrease suggests that Allegiant Travel may have challenges meeting its short-term obligations with its current assets in 2023.

Compared to 2021 when the current ratio was 2.02, the current ratio has experienced a notable decline, reflecting a lower ability to cover short-term liabilities with current assets in 2023. In 2020, the current ratio was 1.37, showing a relatively weaker liquidity position compared to 2021. Furthermore, in 2019, the current ratio was at a low of 0.92, indicating a limited ability to cover short-term obligations with current assets at that time.

Allegiant Travel's current ratio trend over the years highlights the importance of monitoring liquidity levels and managing current assets and liabilities effectively to ensure the company's ability to meet its short-term financial commitments.