Allegiant Travel Company (ALGT)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 117,596 | 2,493 | 151,853 | -184,093 | 232,117 |
| Total assets | US$ in thousands | 4,869,410 | 4,511,300 | 3,991,070 | 3,258,920 | 3,010,800 |
| ROA | 2.41% | 0.06% | 3.80% | -5.65% | 7.71% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $117,596K ÷ $4,869,410K
= 2.41%
The return on assets (ROA) for Allegiant Travel has shown significant fluctuations over the past five years. In 2019, the ROA was notably high at 7.60%, indicating that the company was able to generate a substantial return relative to its assets during that period. However, this trend reversed sharply in 2020, where the ROA plummeted to -5.66%, signaling a period of substantial asset underperformance or losses.
In 2021, Allegiant Travel managed to improve its ROA significantly to 3.75%, reflecting a recovery in asset efficiency and profitability. The following year, in 2022, the ROA was at a significantly low level of 0.05%, suggesting a decline in asset effectiveness in generating profits.
Most recently, in 2023, Allegiant Travel's ROA rebounded to 2.33%, but it remains relatively lower compared to the peak performance observed in 2019. A sustained analysis of the factors underlying these fluctuations in ROA over time would be necessary to identify the key drivers affecting Allegiant Travel's asset utilization and profitability.
Peer comparison
Dec 31, 2023