Allegiant Travel Company (ALGT)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,429,850 | 4,856,670 | 4,511,300 | 3,991,070 | 3,258,920 |
| Total stockholders’ equity | US$ in thousands | 1,089,390 | 1,328,560 | 1,220,700 | 1,223,550 | 699,363 |
| Financial leverage ratio | 4.07 | 3.66 | 3.70 | 3.26 | 4.66 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,429,850K ÷ $1,089,390K
= 4.07
The financial leverage ratio for Allegiant Travel Company has shown some fluctuations over the past five years. As of December 31, 2020, the ratio stood at 4.66, indicating significant reliance on debt to finance its operations. However, by December 31, 2021, the ratio decreased to 3.26, suggesting a reduction in the company's debt relative to its equity.
Subsequently, the financial leverage ratio increased slightly to 3.70 by December 31, 2022, before declining again to 3.66 by December 31, 2023. This fluctuation indicates a moderate level of financial risk and leverage within the company's capital structure.
As of December 31, 2024, the financial leverage ratio rose to 4.07, signaling a potential increase in debt utilization compared to equity. Overall, Allegiant Travel Company's financial leverage ratio has varied over the years, highlighting the importance of monitoring the company's debt levels relative to its equity position to assess its financial health and risk profile.
Peer comparison
Dec 31, 2024