Allegiant Travel Company (ALGT)

Liquidity ratios

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
Current ratio 0.83 1.09 1.13 1.16 1.46 1.32 1.53 1.59 2.02 1.91 1.74 1.35 1.37 1.22 1.09 0.98 0.92 0.96 1.29 1.07
Quick ratio 0.73 0.93 0.96 0.95 1.22 1.19 1.41 1.47 1.88 1.76 1.62 1.23 1.27 1.13 1.01 0.86 0.79 0.79 1.16 0.95
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

Allegiant Travel's liquidity ratios have shown some fluctuation over the past eight quarters. The current ratio, which indicates the company's ability to pay short-term obligations with its current assets, has been on a downward trend since Q4 2022, declining from 1.46 to 0.83 in Q4 2023. This suggests that Allegiant Travel may be having difficulties in meeting its short-term obligations with its current assets.

Similarly, the quick ratio, also known as the acid-test ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, followed a similar pattern, decreasing from 1.41 in Q4 2022 to 0.78 in Q4 2023. This indicates that the company's ability to meet its short-term obligations without relying on the sale of inventory has weakened.

Moreover, the cash ratio, which specifically looks at the company's ability to cover its current liabilities with cash and cash equivalents, has also shown a decline over the quarters, falling from 1.28 in Q4 2022 to 0.72 in Q4 2023. This suggests that Allegiant Travel may be facing challenges in maintaining sufficient levels of cash to cover its immediate liabilities.

Overall, based on the trend in these liquidity ratios, it appears that Allegiant Travel's liquidity position has weakened over the past few quarters, indicating a potential risk in its ability to meet short-term financial obligations. Management may need to closely monitor and potentially improve the company's liquidity management strategies to enhance its financial stability.

Additional liquidity measure

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 conversion cycle days -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 -3.83 8.24 5.28 4.36

The cash conversion cycle for Allegiant Travel has fluctuated over the past eight quarters. In Q4 2023, the company had a cash conversion cycle of 10.29 days, showing a slight increase from the previous quarter's figure of 6.39 days. This increase indicates that Allegiant Travel took longer to convert its investments in inventory back into cash during this period.

Comparing to the same quarter last year, Allegiant Travel has shown improvement as the cash conversion cycle decreased from 16.90 days in Q4 2022 to 10.29 days in Q4 2023. This highlights the company's efficiency in managing its working capital and converting its resources into cash.

Overall, Allegiant Travel has shown a positive trend in managing its cash conversion cycle by reducing the number of days it takes to convert inventory into cash, which is essential for maintaining liquidity and financial health. However, it is important for the company to continue monitoring and improving its cash conversion cycle to optimize its working capital management.