Planet Fitness Inc (PLNT)

Planet Fitness Inc's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. In December 2020, the DOH was at 0.89 days, indicating that, on average, the company held less than a day's worth of inventory on hand. This low figure suggests efficient inventory management and a quick turnover of goods.

However, the DOH increased significantly to 1.63 days by December 2021, signifying a slight slowdown in inventory turnover compared to the previous year. This rise could be attributed to factors such as changes in consumer demand or supply chain disruptions affecting the company's inventory management practices.

By December 2022, the DOH spiked to 10.85 days, marking a substantial increase in the time it takes for Planet Fitness Inc to sell its inventory. This notable surge may raise concerns about overstocking or sluggish sales, potentially indicating inefficiencies in inventory control or weakening demand for the company's products.

The trend continued in December 2023, with the DOH remaining elevated at 8.98 days. Although a slight decrease from the previous year, the DOH remained significantly higher than historical levels, suggesting ongoing challenges in managing inventory effectively, which could impact the company's liquidity and profitability.

Lastly, by December 2024, the DOH further increased to 11.38 days, reaching its highest point in the five-year period. This prolonged period indicates that Planet Fitness Inc is holding more inventory on hand, potentially tying up resources and increasing carrying costs. It is crucial for the company to assess its inventory management strategies to optimize working capital and enhance operational efficiency.

Overall, the fluctuating trend in Planet Fitness Inc's days of inventory on hand reflects varying levels of inventory management effectiveness and operational challenges, underscoring the importance of monitoring and adjusting inventory practices to maintain optimal efficiency and financial health.