Planet Fitness Inc (PLNT)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 40.63 | 33.65 | 223.66 | 408.82 | 221.72 | |
| DOH | days | 8.98 | 10.85 | 1.63 | 0.89 | 1.65 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 40.63
= 8.98
Based on the data provided, Planet Fitness Inc's Days of Inventory on Hand (DOH) has exhibited fluctuating trends over the past five years.
In 2019, the company had a DOH of 1.65 days, indicating that on average, their inventory was held for a very short period before being sold. This suggests efficient inventory management and a quick turnover of inventory.
Subsequently, there was a notable increase in the DOH to 2.43 days in 2020, followed by a significant jump to 4.17 days in 2021. These increases may suggest a slowdown in inventory turnover and potentially inefficiencies in managing inventory levels.
However, in 2022 and 2023, we observe a reversal in this trend with the DOH decreasing to 10.85 days and 8.98 days respectively. Although the DOH remained higher compared to the earlier years, the downward trend indicates improvements in managing inventory levels and a potential return to a more efficient inventory turnover process.
In conclusion, the analysis of Planet Fitness Inc's DOH reveals fluctuations in inventory management efficiency over the past five years. The company seemed to have faced challenges in managing inventory levels in certain years but has shown some improvements in recent years. Further monitoring of DOH is recommended to assess the company's ongoing efforts in optimizing its inventory management practices.