Allegiant Travel Company (ALGT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,089,390 | 1,328,560 | 1,220,700 | 1,223,550 | 699,363 |
| ROE | -22.05% | 8.85% | 0.20% | 12.41% | -26.32% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-240,238K ÷ $1,089,390K
= -22.05%
The return on equity (ROE) for Allegiant Travel Company has shown a fluctuating trend over the past five years. In December 31, 2020, the company reported a negative ROE of -26.32%, indicating that the company generated a loss relative to its equity that year. However, there was a significant improvement in December 31, 2021, with the ROE increasing to 12.41%, suggesting a positive return on equity and improved financial performance.
Subsequently, in December 31, 2022, the ROE dropped to a low of 0.20%, indicating a decrease in profitability relative to the equity invested. The following year, December 31, 2023, saw an improvement in ROE to 8.85%, suggesting a better performance compared to the previous year.
However, the most recent data point, December 31, 2024, indicates a decline in ROE to -22.05%, signaling a negative return on equity and a potential decrease in profitability compared to the prior year. Overall, the company's ROE has shown variability over the years, reflecting changes in profitability and efficiency in utilizing shareholder equity to generate returns.
Peer comparison
Dec 31, 2024