Allegiant Travel Co (Allegiant Travel Co) Interest Coverage

: 0.80 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Allegiant Travel Co's Operating Income for the three months ended in Dec. 2023 was $19 Mil. Allegiant Travel Co's Interest Expense for the three months ended in Dec. 2023 was $-24 Mil. Allegiant Travel Co's interest coverage for the quarter that ended in Dec. 2023 was 0.80. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Allegiant Travel Co's Interest Coverage or its related term are showing as below:

ALGT' s Interest Coverage Range Over the Past 10 Years
Min: 0.44 Med: 4.64 Max: 14.02
Current: 2.31

ALGT's Interest Coverage is ranked worse than
76.23% of 816 companies
in the Transportation industry
Industry Median: 5.605 vs ALGT: 2.31

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Allegiant Travel Co Interest Coverage Historical Data

The historical data trend for Allegiant Travel Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Allegiant Travel Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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4.74

0.44

4.05

1.22

2.31

Allegiant Travel Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															2.75	3.05	4.23	0.61	0.80

Competitive Comparison

For the Airlines subindustry, Allegiant Travel Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Allegiant Travel Co Interest Coverage Distribution

For the Transportation industry and Industrials sector, Allegiant Travel Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Allegiant Travel Co's Interest Coverage falls into.

Allegiant Travel Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Allegiant Travel Co's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Allegiant Travel Co's Interest Expense was $-108 Mil. Its Operating Income was $250 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,902 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	249.626	/	-108.054
	=	2.31

Allegiant Travel Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Allegiant Travel Co's Interest Expense was $-24 Mil. Its Operating Income was $19 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,902 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	19.429	/	-24.296
	=	0.80

The higher the ratio, the stronger the company's Financial Strength is.

Allegiant Travel Co (NAS:ALGT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Allegiant Travel Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Allegiant Travel Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Allegiant Travel Co (Allegiant Travel Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Allegiant Travel Co (NAS:ALGT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1201 North Town Center Drive, Las Vegas, NV, USA, 89144

Website

https://www.allegiant.com

Allegiant Travel Co provides travel services in the United States. It sells air transportation on a stand-alone basis or bundled with air-related and third-party services and products. Customers may also purchase fixed-fee flying arrangements to receive charter service on a year-round and ad hoc basis. Additionally, customers may purchase hotel rooms, ground transportation, and other attractions (for example, entertainment show tickets) to accommodate a trip. The company's operating segment includes Airline, Sunseeker Resort, and other non-airline. Customers purchase travel tickets at airport ticket counters, online, or through its telephone reservation center.

Executives

Scott Wayne Deangelo	officer: EVP, Marketing	1201 N TOWN CENTER DRIVE, LAS VEGAS NV 89144
Keny Frank Wilper	officer: Interim COO	1201 N TOWN CENTER DR, LAS VEGAS NV 89144
Gary Ellmer	director	448 LANG ROAD, PORTSMOUTH NH 03801
Gregory Clark Anderson	officer: Chief Accounting Officer	1201 NORTH TOWN CENTER DRIVE, LAS VEGAS NV 89144
Wilson Robert Paul Iii	officer: EVP and CIO	1201 N TOWN CENTER DR, LAS VEGAS NV 89144
Drew Allen Wells	officer: SVP, Chief Revenue Officer	1201 N. TOWN CENTER DRIVE, LAS VEGAS NV 89144
Scott Sheldon	officer: Principal Accounting Officer	1201 NORTH TOWN CENTER DRIVE, LAS VEGAS NV 89144
Robert James Neal	officer: CFO	1201 N TOWN CENTER DR, LAS VEGAS NV 89144
Gallagher Maurice J Jr	director, 10 percent owner, officer: CEO and President	1201 NORTH TOWN CENTER DRIVE, LAS VEGAS NV 89144
Rebecca Aretos	officer: Principal Accounting Officer	1201 N. TOWN CENTER DRIVE., LAS VEGAS NV 89144
Sandra Douglass Morgan	director	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
John Redmond	director	1201 N. TOWN CENTER DRIVE, LAS VEGAS NV 89144
Linda A Marvin	officer: CFO and Managing Director	9057 WATERFIELD COURT, LAS VEGAS NV 89134
Charles W. Pollard	director	50 CRESCENT AVENUE, SECOND CLIFF, SCITUATE MA 02066
Jude Bricker	officer: SVP - Planning	1201 NORTH TOWN CENTER DRIVE, LAS VEGAS NV 89144