The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Allegiant Travel Co's current ratio for the quarter that ended in Mar. 2025 was 0.90.
Allegiant Travel Co has a current ratio of 0.90. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Allegiant Travel Co has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Allegiant Travel Co's Current Ratio or its related term are showing as below:
ALGT'
s Current Ratio Range Over the Past 10 Years
Min: 0.53 Med: 1.04 Max: 2.02
Current: 0.9
During the past 13 years, Allegiant Travel Co's highest Current Ratio was 2.02. The lowest was 0.53. And the median was 1.04.
ALGT's Current Ratio is ranked worse than 77.08% of 999
companies
in the Transportation industry
Industry Median: 1.44
vs ALGT: 0.90
Allegiant Travel Co Current Ratio Historical Data
The historical data trend for Allegiant Travel Co's Current Ratio 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.
Competitive Comparison of Allegiant Travel Co's Current Ratio
For the Airlines subindustry, Allegiant Travel Co's Current Ratio, along with its competitors' market caps and Current Ratio 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's Current Ratio Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Allegiant Travel Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Allegiant Travel Co's Current Ratio falls into.
* 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.
Allegiant Travel Co (NAS:ALGT) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Allegiant Travel Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Allegiant Travel Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Allegiant Travel Co is a leisure travel company focused on providing travel and leisure services and products to residents of under-served cities in the United States. It operates a low-cost, low utilization passenger airline marketed to leisure travelers in under-served cities, allowing it to sell air transportation both on a stand-alone basis and bundled with the sale of air-related and third-party services and products. In addition, it provides air transportation under fixed-fee flight arrangements. In connection with its leisure travel focus, the company has opened Sunseeker Resort Charlotte Harbor, equipped with several guestrooms and food and beverage outlets. The company's operating segments are the Airline, which generates maximum revenue, and Sunseeker Resort.
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