Allegiant Travel Company (ALGT)

Quick 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	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
Receivables	US$ in thousands	70,743	43,957	47,147	57,798	106,578	79,150	85,315	91,070	62,659	147,407	175,388	188,116	192,215	166,924	208,573	190,108	25,516	31,450	36,100	34,209
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
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

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

The quick ratio of Allegiant Travel has shown a declining trend from Q1 2022 to Q4 2023. The quick ratio decreased from 1.52 in Q1 2022 to 0.78 in Q4 2023. This indicates that the company's ability to meet its short-term obligations using its most liquid assets has weakened over the past eight quarters. A quick ratio below 1.0 typically suggests that the company may have difficulties in paying off its current liabilities without relying on inventory or other less liquid assets. It is important for Allegiant Travel to closely monitor its liquidity position and take appropriate measures to improve its quick ratio to ensure its short-term financial health.