Allegiant Travel Company (ALGT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.00% | 61.54% | 28.93% | -14.69% | 39.54% |
| Operating profit margin | 8.80% | 3.98% | 15.40% | -28.38% | 19.77% |
| Pretax margin | 6.34% | 0.22% | 11.51% | -36.47% | 16.36% |
| Net profit margin | 4.69% | 0.11% | 8.89% | -18.59% | 12.61% |
Allegiant Travel's profitability ratios have shown fluctuations over the past five years. The gross profit margin has remained consistently high at 100% throughout the period, indicating efficient management of production costs.
The operating profit margin has experienced variability, with a significant increase from -43.78% in 2020 to 9.95% in 2023. This suggests that Allegiant Travel has improved its operational efficiency and cost management strategies in recent years.
The pretax margin also displays volatility, with a notable improvement from negative figures in 2020 and 2019 to 6.34% in 2023. This indicates that the company has managed to generate higher profits before considering tax expenses.
Similarly, the net profit margin has shown fluctuations, with a rise from negative values in 2020 and 2019 to 4.52% in 2023. This suggests that Allegiant Travel has been able to increase its bottom-line profitability after accounting for all expenses and taxes.
Overall, Allegiant Travel's profitability ratios reflect a mixed performance over the years, with recent improvements in operating, pretax, and net profit margins indicating a potential uptrend in the company's profitability and financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.54% | 2.03% | 6.59% | -8.62% | 12.09% |
| Return on assets (ROA) | 2.41% | 0.06% | 3.80% | -5.65% | 7.71% |
| Return on total capital | 9.92% | 3.81% | 9.35% | -13.98% | 17.73% |
| Return on equity (ROE) | 8.85% | 0.20% | 12.41% | -26.32% | 26.27% |
Allegiant Travel's profitability ratios have shown fluctuating performance over the past five years.
Operating return on assets (Operating ROA) has displayed an upward trend, increasing from 1.88% in 2021 to 5.13% in 2023, indicating that the company is generating more operating income relative to its total assets.
Return on assets (ROA) has been volatile, with negative returns in 2020 and a significant drop in 2021, but a slight recovery to 2.33% in 2023. This ratio suggests that Allegiant Travel is generating a modest net income in relation to its total assets.
Return on total capital has also shown improvement, climbing from -18.38% in 2020 to 6.96% in 2023, signaling that the company is earning better returns on its total invested capital.
Return on equity (ROE) has exhibited significant fluctuations, with a sharp decrease in 2020 followed by a recovery in the subsequent years. In 2023, ROE stands at 8.54%, indicating that the company is generating decent returns for its shareholders.
Overall, while there have been fluctuations in profitability ratios, the recent positive trends in Operating ROA, Return on Total Capital, and ROE suggest an improving profitability performance for Allegiant Travel.