Allegiant Travel Company (ALGT)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -240,238 | 117,596 | 2,493 | 151,853 | -184,093 |
| Total assets | US$ in thousands | 4,429,850 | 4,856,670 | 4,511,300 | 3,991,070 | 3,258,920 |
| ROA | -5.42% | 2.42% | 0.06% | 3.80% | -5.65% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-240,238K ÷ $4,429,850K
= -5.42%
Allegiant Travel Company's Return on Assets (ROA) has shown variability over the past few years. In 2020, the ROA was negative at -5.65%, indicating that the company experienced a loss relative to its assets. However, in 2021, the ROA improved significantly to 3.80%, reflecting a positive trend in generating profits from its assets. Subsequently, the ROA decreased to 0.06% in 2022, suggesting a decrease in profitability efficiency.
By 2023, Allegiant Travel Company managed to increase its ROA to 2.42%, indicating a recovery in generating returns from its assets. However, in 2024, the ROA dropped to -5.42%, signaling a decline in profitability efficiency.
Overall, Allegiant Travel Company's ROA performance has been volatile, reflecting fluctuations in its ability to generate profits from its assets. It is essential for the company to focus on improving efficiency and profitability to sustain and enhance its financial performance in the coming years.
Peer comparison
Dec 31, 2024