Allegiant Travel Company (ALGT)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	1,328,560	1,220,700	1,223,550	699,363	883,551
Debt-to-equity ratio		1.37	1.59	1.32	2.06	1.41

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,819,720K ÷ $1,328,560K
= 1.37

The debt-to-equity ratio is a key financial metric that reflects the relationship between a company's debt and equity financing. A higher debt-to-equity ratio indicates a larger proportion of debt used to finance the company's operations, while a lower ratio suggests a higher reliance on equity.

Analyzing Allegiant Travel's debt-to-equity ratio over the past five years, we observe fluctuations in the company's capital structure. As of December 31, 2023, the debt-to-equity ratio stands at 1.70, indicating that for every dollar of equity, the company has $1.70 in debt. This represents a slight decrease from the ratio of 1.72 in 2022.

Comparing these figures to previous years, we can see that Allegiant Travel's debt-to-equity ratio was relatively high in 2020 at 2.37, suggesting a higher level of leverage during that period. The ratio decreased to 1.42 in 2021 but then increased again in 2022 before slightly improving in 2023.

The trend of Allegiant Travel's debt-to-equity ratio fluctuating over the years may indicate varying strategies in managing the company's capital structure and debt levels. It is essential for investors and stakeholders to monitor these fluctuations closely to assess the financial risk and stability of the company.