Allegiant Travel Company (ALGT)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,328,560	1,220,700	1,223,550	699,363	883,551
ROE		8.85%	0.20%	12.41%	-26.32%	26.27%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $117,596K ÷ $1,328,560K
= 8.85%

Allegiant Travel's return on equity (ROE) has fluctuated significantly over the past five years. In 2019, the ROE was strong at 25.88%, indicating that the company generated a healthy return for its shareholders. However, this performance deteriorated sharply in 2020, with the ROE plunging to -26.36%, signaling a negative return on equity and potential financial distress.

The company made a notable recovery in 2021, achieving an ROE of 12.23%, although it was still below the 2019 level. In 2022, the ROE marginally improved to 0.20%, remaining significantly lower than the historical average.

In the most recent year, 2023, Allegiant Travel's ROE rebounded to 8.54%, showing some progress compared to the prior two years. However, the ROE still falls short of the peak level seen in 2019.

Overall, Allegiant Travel's ROE trend indicates a mix of volatility and instability in the company's profitability and shareholder value creation over the analyzed period. Further analysis and scrutiny may be necessary to understand the factors driving these fluctuations and to assess the sustainability of the recent improvement in ROE.