Allegiant Travel Company (ALGT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.41 | 0.43 | 0.45 | 0.44 |
| Debt-to-capital ratio | 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 | 0.59 | 0.59 | 0.62 | 0.62 |
| Debt-to-equity ratio | 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 | 1.41 | 1.47 | 1.66 | 1.63 |
| 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 |
Allegiant Travel's solvency ratios provide insights into the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio demonstrates the percentage of the company's assets that are financed by debt. The ratio has been relatively consistent over the past quarters, ranging from 0.45 to 0.47, indicating that around 45-47% of the company's assets are funded through debt.
The debt-to-capital ratio reveals the proportion of the company's capital that is funded by debt. This ratio has also shown stability, with values ranging between 0.61 to 0.63. This indicates that around 61-63% of Allegiant Travel's capital structure is debt-financed.
The debt-to-equity ratio signifies the extent to which the company relies on debt as opposed to equity for financing. Allegiant Travel's ratio has fluctuated between 1.45 to 1.72, indicating that the company's debt levels relative to equity have varied, but in general, there has been a moderate reliance on debt for financing.
The financial leverage ratio measures the company's overall leverage, reflecting the extent to which the company is using debt to finance its assets. Allegiant Travel's financial leverage ratio has been in the range of 3.46 to 3.71, which demonstrates that the company has maintained a moderately high level of financial leverage.
Overall, based on the analysis of these solvency ratios, Allegiant Travel appears to have a stable and moderate level of debt utilization in its capital structure, with a consistent reliance on debt for financing its operations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.44 | 2.33 | 2.14 | 1.40 | 0.79 | 0.40 | 1.75 | 3.50 | 3.85 | 3.11 | 1.74 | -2.67 | -4.85 | -2.90 | -1.02 | 2.26 | 4.92 | 4.71 | 4.37 | 4.33 |
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to meet interest obligations.
Analyzing Allegiant Travel's interest coverage ratio over the past eight quarters, we observe a fluctuating trend. The ratio increased steadily from Q4 2022 to Q3 2023, reaching a peak of 4.37 before slightly decreasing to 4.06 in Q4 2023. This indicates an improvement in the company's ability to cover its interest expenses.
However, it is important to note that the interest coverage ratio dipped significantly in Q1 2023 to 2.38, a level that could raise concerns about the company's ability to meet its interest payments comfortably. This suggests a period of lower financial flexibility for Allegiant Travel.
Compared to the previous year, the interest coverage ratio has generally improved, with higher ratios in Q3 and Q4 2023 compared to the same quarters in 2022. This signals a positive trend in Allegiant Travel's ability to service its debt obligations from operating income.
Overall, while there have been fluctuations in Allegiant Travel's interest coverage ratio, the general trend has shown an improvement in the company's capacity to cover its interest expenses over the past year.