Allegiant Travel Company (ALGT)

Debt-to-capital ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 1,611,740 1,819,720 1,944,080 1,612,490 1,441,780
Total stockholders’ equity US$ in thousands 1,089,390 1,328,560 1,220,700 1,223,550 699,363
Debt-to-capital ratio 0.60 0.58 0.61 0.57 0.67

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,611,740K ÷ ($1,611,740K + $1,089,390K)
= 0.60

The debt-to-capital ratio for Allegiant Travel Company has exhibited a slight fluctuation over the past five years. It decreased from 0.67 as of December 31, 2020, to 0.57 as of December 31, 2021, indicating a favorable reduction in the proportion of debt relative to the capital structure. However, there was a subsequent increase to 0.61 by December 31, 2022, before declining again to 0.58 by December 31, 2023. As of December 31, 2024, the ratio stood at 0.60, which suggests that the company's reliance on debt relative to its capital base has remained relatively consistent in recent years. Overall, while there have been fluctuations, the debt-to-capital ratio for Allegiant Travel Company indicates a moderate level of leverage in its capital structure.