Allegiant Travel Company (ALGT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.21% | 58.00% | 61.54% | 28.93% | -14.69% |
| Operating profit margin | -9.55% | 8.80% | 3.98% | 15.40% | -28.38% |
| Pretax margin | -12.28% | 6.34% | 0.22% | 11.51% | -36.47% |
| Net profit margin | -9.56% | 4.69% | 0.11% | 8.89% | -18.59% |
Allegiant Travel Company has shown significant improvement in its profitability ratios over the years, based on the provided data.
- Gross Profit Margin: The company experienced a negative gross profit margin of -14.69% in December 2020, indicating inefficiencies in cost management. However, this turned around dramatically, with the margin increasing to 28.93% in December 2021 and further rising to 61.54% in December 2022. In the following years, the margin remained strong at 58.00% in December 2023 and 38.21% in December 2024, showcasing consistent profitability in generating revenue after accounting for the cost of goods sold.
- Operating Profit Margin: Allegiant Travel Company significantly improved its operating profit margin from -28.38% in December 2020 to 15.40% in December 2021. The margin declined slightly to 3.98% in December 2022 but recovered to 8.80% in December 2023. However, there was a negative trend in December 2024, where the margin dropped to -9.55%, indicating challenges in managing operating expenses and generating profits from core business operations.
- Pretax Margin: The company's pretax margin shifted from a negative -36.47% in December 2020 to a positive 11.51% in December 2021, representing a remarkable turnaround. However, the margin decreased to 0.22% in December 2022 but recovered to 6.34% in December 2023 before sliding back to -12.28% in December 2024, indicating challenges in controlling pre-tax expenses and taxes relative to revenue.
- Net Profit Margin: Allegiant Travel Company's net profit margin also exhibited fluctuation over the years. After a negative net profit margin of -18.59% in December 2020, the company improved to 8.89% in December 2021. However, the margin decreased significantly to 0.11% in December 2022 before recovering to 4.69% in December 2023. In December 2024, the net profit margin turned negative again at -9.56%, potentially due to challenges in managing overall expenses and taxes impacting bottom-line profitability.
Overall, Allegiant Travel Company has shown varying levels of profitability performance over the years, with notable improvements in gross profit margin and operating profit margin, although challenges in maintaining consistent net profit margin and pre-tax margin are apparent.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -5.42% | 4.55% | 2.03% | 6.59% | -8.62% |
| Return on assets (ROA) | -5.42% | 2.42% | 0.06% | 3.80% | -5.65% |
| Return on total capital | -5.63% | 9.92% | 3.81% | 9.35% | -13.98% |
| Return on equity (ROE) | -22.05% | 8.85% | 0.20% | 12.41% | -26.32% |
Allegiant Travel Company's profitability ratios show fluctuations over the years. The Operating return on assets (Operating ROA) improved from -8.62% in 2020 to 6.59% in 2021, but decreased in 2022 to 2.03%. It then increased to 4.55% in 2023 before dropping to -5.42% in 2024. Return on assets (ROA) followed a similar pattern, starting at -5.65% in 2020, increasing to 3.80% in 2021, dropping to 0.06% in 2022, increasing again to 2.42% in 2023, and then falling to -5.42% in 2024.
Return on total capital began at -13.98% in 2020, significantly improving to 9.35% in 2021, declining to 3.81% in 2022, increasing to 9.92% in 2023, and decreasing to -5.63% in 2024. Return on equity (ROE) experienced a substantial improvement as well, starting at -26.32% in 2020 and increasing to 12.41% in 2021. However, it dropped to 0.20% in 2022, increased to 8.85% in 2023, and then decreased to -22.05% in 2024.
These fluctuations in profitability ratios indicate that Allegiant Travel Company's performance has been inconsistent over the years, with profitability metrics showing both improvement and decline during the period under consideration.