Allegiant Travel Company (ALGT)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,819,720	1,944,080	1,612,490	1,441,780	1,248,580
Total assets	US$ in thousands	4,869,410	4,511,300	3,991,070	3,258,920	3,010,800
Debt-to-assets ratio		0.37	0.43	0.40	0.44	0.41

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,819,720K ÷ $4,869,410K
= 0.37

The debt-to-assets ratio of Allegiant Travel has been relatively stable over the past five years, ranging from 0.44 to 0.51. In general, the ratio indicates that the company finances a significant portion of its assets through debt, with the latest figure for December 31, 2023, standing at 0.46. This suggests that approximately 46% of Allegiant Travel's assets are funded by debt.

While the ratio has shown some fluctuations, it has not deviated significantly from its historical range, indicating a consistent approach to capital structure management by the company. A debt-to-assets ratio of less than 1 indicates that Allegiant Travel's assets are primarily financed by a combination of debt and equity, with a higher ratio suggesting a higher level of financial leverage.

Overall, the stability of the debt-to-assets ratio over the years implies that Allegiant Travel has maintained a balanced mix of debt and equity in funding its operations and investments, allowing the company to manage its financial obligations effectively while supporting its growth strategies.