Allegiant Travel Company (ALGT)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	220,981	91,646	263,075	-280,985	363,950
Total assets	US$ in thousands	4,869,410	4,511,300	3,991,070	3,258,920	3,010,800
Operating ROA		4.54%	2.03%	6.59%	-8.62%	12.09%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $220,981K ÷ $4,869,410K
= 4.54%

The operating return on assets (operating ROA) for Allegiant Travel has fluctuated over the past five years. In 2023, the operating ROA improved to 5.13% from 2.80% in 2022, indicating enhanced operational efficiency in generating profit from its assets. This improvement suggests that Allegiant Travel has been more effective in generating operating income relative to its total assets in 2023.

The trend in operating ROA shows a significant improvement from the negative value of -13.30% in 2020, indicating a shift from operating losses to profitability. However, the results in 2020 suggest significant challenges that the company faced that year, impacting its ability to generate profits from its operating activities.

Overall, the 2023 operating ROA of 5.13% reflects positively on Allegiant Travel's operational performance, showcasing an upward trajectory in utilizing its assets efficiently to generate operating income. It is important for the company to sustain and potentially improve this trend in the future to ensure continued profitability and financial success.