Allegiant Travel Company (ALGT)

Financial leverage 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
Total assets	US$ in thousands	4,869,410	4,912,340	4,829,550	4,680,420	4,511,300	4,410,960	4,410,960	4,437,870	3,991,070	3,766,750	3,874,710	3,345,200	3,258,920	3,223,090	3,272,970	3,191,910	3,010,800	2,834,480	2,982,200	2,750,480
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
Financial leverage ratio		3.67	3.66	3.52	3.68	3.70	3.71	3.58	3.63	3.26	3.16	3.38	4.71	4.66	4.53	4.44	3.94	3.41	3.43	3.71	3.72

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,869,410K ÷ $1,328,560K
= 3.67

Allegiant Travel's financial leverage ratio has been relatively stable over the past eight quarters, ranging from 3.46 to 3.71. The ratio peaked in Q4 2022 at 3.71 and slightly decreased to 3.52 in Q2 2023 before rebounding to 3.67 in Q4 2023. This indicates that the company relies more on debt financing compared to equity to support its operations and growth. A higher financial leverage ratio suggests higher financial risk due to increased reliance on debt, which can lead to higher interest costs and potential liquidity challenges during economic downturns. It is essential for Allegiant Travel to carefully manage its debt levels to maintain financial stability and meet its obligations.