Allegiant Travel Company (ALGT)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	378,089	349,285	301,574	265,137
Long-term debt	US$ in thousands	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	1,248,580	1,213,300	1,338,730	1,203,710
Total stockholders’ equity	US$ in thousands	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	883,551	826,608	804,509	738,454
Return on total capital		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%	17.73%	17.12%	14.07%	13.65%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $220,983K ÷ ($1,819,720K + $1,328,560K)
= 7.02%

The return on total capital for Allegiant Travel has shown variability over the past eight quarters. In Q4 2023, the return on total capital was 6.96%, a slight decrease from the previous quarter's 8.78%. Despite this slight decline, the company's return on total capital has generally been trending upwards since Q1 2022, where it was at its lowest point of 2.99%.

The increase in return on total capital indicates that Allegiant Travel has been improving its efficiency in generating returns from its total capital employed. This could be attributed to better operational performance, cost management, or capital utilization by the company.

Overall, the upward trend in the return on total capital suggests positive financial performance and effective utilization of capital by Allegiant Travel in recent quarters, despite some fluctuations. It would be beneficial to continue monitoring this ratio to assess the company's ongoing financial health and efficiency in capital allocation.