Allegiant Travel Company (ALGT)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -152,008 | 102,627 | 89,121 | 164,981 | 220,983 | 299,570 | 286,542 | 179,243 | 91,647 | 35,779 | 132,979 | 245,700 | 263,929 | 208,947 | 109,893 | -161,321 | -299,352 | -180,780 | -71,580 | 173,514 |
| Long-term debt | US$ in thousands | 1,611,740 | 1,767,250 | 1,733,250 | 1,789,580 | 1,819,720 | 2,020,020 | 1,887,780 | 1,816,150 | 1,944,080 | 1,840,000 | 1,803,530 | 1,634,540 | 1,612,490 | 1,434,610 | 1,441,080 | 1,459,570 | 1,441,780 | 1,316,170 | 1,273,440 | 1,264,390 |
| Total stockholders’ equity | US$ in thousands | 1,089,390 | 1,299,900 | 1,333,040 | 1,322,160 | 1,328,560 | 1,343,140 | 1,373,560 | 1,271,400 | 1,220,700 | 1,188,970 | 1,232,370 | 1,222,300 | 1,223,550 | 1,191,060 | 1,147,130 | 709,654 | 699,363 | 711,698 | 736,560 | 809,902 |
| Return on total capital | -5.63% | 3.35% | 2.91% | 5.30% | 7.02% | 8.91% | 8.79% | 5.81% | 2.90% | 1.18% | 4.38% | 8.60% | 9.31% | 7.96% | 4.25% | -7.44% | -13.98% | -8.91% | -3.56% | 8.36% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-152,008K ÷ ($1,611,740K + $1,089,390K)
= -5.63%
Allegiant Travel Company's return on total capital has fluctuated over the specified periods. The company recorded negative returns in several quarters in 2020 and 2021, indicating challenges in generating sufficient profits relative to the total capital employed. However, there has been a notable improvement in the return on total capital since March 2022, with positive returns being achieved consistently until December 2023. The return on total capital peaked at 9.31% in December 2021.
In the most recent periods, the return on total capital has shown some variability, with fluctuations between 2.91% and 8.91%. Overall, Allegiant Travel Company's return on total capital reflects the financial performance and efficiency of the company in utilizing its total capital to generate profits. Further analysis may be needed to understand the factors contributing to these fluctuations and to assess the company's strategic direction in optimizing its capital utilization.
Peer comparison
Dec 31, 2024