Allegiant Travel Company (ALGT)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.58	0.60	0.58	0.59	0.61	0.61	0.59	0.57	0.57	0.55	0.56	0.67	0.67	0.65	0.63	0.61	0.59	0.59	0.62	0.62

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,819,720K ÷ ($1,819,720K + $1,328,560K)
= 0.58

The debt-to-capital ratio of Allegiant Travel has been relatively stable over the past eight quarters, ranging from 0.59 to 0.63. This ratio indicates the proportion of the company's capital that is financed by debt.

The consistent range of 0.59 to 0.63 suggests that Allegiant Travel has maintained a moderate level of debt relative to its total capital structure over the past two years. A higher ratio may indicate higher financial risk due to increased reliance on debt financing, while a lower ratio may signify a more conservative financial strategy.

Overall, with a relatively stable debt-to-capital ratio, Allegiant Travel appears to have maintained a balanced approach to leveraging debt in its capital structure, which can be viewed positively as it provides the company with financial flexibility while managing risk.