Allegiant Travel Company (ALGT)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -239,976 | 220,981 | 91,646 | 263,075 | -280,985 |
| Total assets | US$ in thousands | 4,429,850 | 4,856,670 | 4,511,300 | 3,991,070 | 3,258,920 |
| Operating ROA | -5.42% | 4.55% | 2.03% | 6.59% | -8.62% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-239,976K ÷ $4,429,850K
= -5.42%
Operating ROA measures the company's ability to generate operating profits from its assets. Looking at the trend for Allegiant Travel Company, we see fluctuations in the operating ROA over the years. In 2020, the operating ROA was negative at -8.62%, indicating that the company struggled to generate operating profits relative to its assets. However, there was a significant improvement in 2021, with the operating ROA increasing to 6.59%, showing a strong rebound in profitability.
In 2022, the operating ROA decreased to 2.03%, suggesting a slight dip in the company's ability to generate operating profits from its assets. The following year, in 2023, there was a moderate increase to 4.55% in the operating ROA, indicating an improvement in profitability relative to the previous year.
By the end of 2024, the operating ROA declined again to -5.42%, signaling a negative return on assets in that period. Overall, Allegiant Travel Company's operating ROA has shown variability over the years, with a mix of positive and negative returns, reflecting fluctuations in the company's operational performance.
Peer comparison
Dec 31, 2024