Allegiant Travel Company (ALGT)

Solvency ratios

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
Debt-to-assets ratio 0.36 0.37 0.35 0.36 0.37 0.41 0.39 0.39 0.43 0.42 0.41 0.37 0.40 0.38 0.37 0.44 0.44 0.41 0.39 0.40
Debt-to-capital ratio 0.60 0.58 0.57 0.58 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
Debt-to-equity ratio 1.48 1.36 1.30 1.35 1.37 1.50 1.37 1.43 1.59 1.55 1.46 1.34 1.32 1.20 1.26 2.06 2.06 1.85 1.73 1.56
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

Allegiant Travel Company's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown fluctuations over the years but has remained relatively stable, ranging from 0.35 to 0.44. This ratio indicates that, on average, 35% to 44% of the company's assets are financed by debt.

The debt-to-capital ratio has also exhibited variations, ranging from 0.55 to 0.67. This ratio reflects the proportion of debt relative to the total capital structure, with debt representing 55% to 67% of the company's total capital on average.

The debt-to-equity ratio has shown a declining trend over the years, ranging from 1.26 to 2.06. This ratio signifies the proportion of debt relative to equity, with debt ranging from 126% to 206% of equity on average.

The financial leverage ratio has similarly shown fluctuations, oscillating between 3.16 and 4.71. This ratio measures the company's financial risk and indicates the level of debt financing in relation to equity, with a range of 3.16 to 4.71 times on average.

Overall, while there have been some fluctuations in Allegiant Travel Company's solvency ratios over the years, the company appears to maintain a relatively stable financial position with a prudent level of debt relative to its assets, capital, and equity.

Coverage ratios

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
Interest coverage -0.97 0.64 0.56 1.05 1.44 1.90 1.93 1.35 0.79 0.40 1.75 3.50 3.85 3.11 1.74 -2.67 -4.85 -2.90 -1.02 2.26

The interest coverage ratio for Allegiant Travel Company, as derived from the provided data, fluctuated significantly over the reported period. Starting from March 31, 2020, at 2.26, the ratio dropped into negative territory in the subsequent quarters of June and September 2020, indicating challenges in meeting interest obligations from operating earnings. The negative trend continued into December 2020, hitting a low of -4.85.

However, there was a notable recovery in the interest coverage ratio from March 2021 onwards, with the ratio turning positive again and showing an upward trajectory in the following quarters. By December 31, 2021, the interest coverage ratio improved to 3.85, indicating a stronger ability to cover interest expenses. The trend continued positively into the first half of 2022.

Despite the improvement, the interest coverage ratio started to decline from June 30, 2022, and remained relatively low and volatile in the subsequent quarters up to December 31, 2024, with occasional negative values. Overall, the interest coverage ratio for Allegiant Travel Company exhibited fluctuations over the period, indicating variations in the company's ability to cover its interest payments with operating income.