Allegiant Travel Company (ALGT)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	143,259	229,989	363,378	152,764	121,888
Short-term investments	US$ in thousands	671,414	725,063	819,478	532,477	335,928
Receivables	US$ in thousands	70,743	106,578	62,659	192,215	25,516
Total current liabilities	US$ in thousands	1,212,310	869,831	663,045	689,345	612,584
Quick ratio		0.73	1.22	1.88	1.27	0.79

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($143,259K + $671,414K + $70,743K) ÷ $1,212,310K
= 0.73

Allegiant Travel's quick ratio has exhibited fluctuations over the past five years. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

In 2023, Allegiant Travel's quick ratio decreased to 0.78, indicating a decline in its ability to cover immediate liabilities with its liquid assets. This may raise concerns about the company's short-term liquidity position.

In contrast, the quick ratio was relatively strong in 2021 and 2022, standing at 1.92 and 1.41, respectively. This suggests that Allegiant Travel had sufficient liquid assets to settle its current liabilities comfortably during those years.

The quick ratio also dipped in 2020 to 1.31 before falling further in 2019 to 0.85. Both instances indicate potential liquidity challenges, as the company may have struggled to meet short-term obligations without relying on inventory.

Overall, Allegiant Travel's quick ratio has fluctuated over the years, highlighting variations in the company's ability to cover immediate debts with its liquid assets. Investors and stakeholders should monitor this metric closely to assess the company's short-term financial health and liquidity position.