Allegiant Travel Company (ALGT)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,429,850 | 4,788,250 | 4,903,610 | 4,935,130 | 4,856,670 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,089,390 | 1,299,900 | 1,333,040 | 1,322,160 | 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 |
| Financial leverage ratio | 4.07 | 3.68 | 3.68 | 3.73 | 3.66 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,429,850K ÷ $1,089,390K
= 4.07
The financial leverage ratio of Allegiant Travel Company has shown fluctuations over the analyzed period, ranging from a low of 3.16 to a high of 4.71. Generally, a higher financial leverage ratio indicates a higher level of debt relative to equity in the company's capital structure.
The company experienced an increase in its financial leverage ratio from March 2020 to March 2021, reaching its peak at 4.71, suggesting an increase in the use of debt to finance its operations during that period. However, starting from June 2021, the financial leverage ratio started to decline steadily, indicating a reduction in the company's reliance on debt for funding.
By the end of the analyzed period in December 2024, the financial leverage ratio stood at 4.07, showing a slight increase compared to the earlier decreasing trend. This could indicate a shift towards a slightly higher level of debt usage in the company's capital structure at the end of the period.
Overall, the financial leverage ratio of Allegiant Travel Company reflects the company's changing mix of debt and equity financing over time, highlighting the importance of monitoring leverage levels to assess the company's financial risk and solvency.
Peer comparison
Dec 31, 2024