Planet Fitness Inc (PLNT)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 40.63 | 27.38 | 29.34 | 34.87 | 33.65 | 72.96 | 94.33 | 156.28 | 223.66 | 49.12 | 158.34 | 383.57 | 408.82 | 58.14 | 48.92 | 64.47 | 221.72 | 75.65 | 74.92 | 49.53 | |
| DOH | days | 8.98 | 13.33 | 12.44 | 10.47 | 10.85 | 5.00 | 3.87 | 2.34 | 1.63 | 7.43 | 2.31 | 0.95 | 0.89 | 6.28 | 7.46 | 5.66 | 1.65 | 4.82 | 4.87 | 7.37 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 40.63
= 8.98
The Days of Inventory on Hand (DOH) represents the average number of days a company holds its inventory before selling it. A lower DOH indicates that a company is selling its products quickly, while a higher DOH could suggest inventory management challenges or slower sales.
Analyzing Planet Fitness Inc's DOH over the past eight quarters, we observe fluctuations in the metric. In Q4 2023, the DOH stood at 8.98 days, a decrease from the previous quarter's 13.33 days. This reduction implies that Planet Fitness managed its inventory more efficiently in Q4 2023, possibly by selling products at a faster pace.
Looking further back, we can see that the DOH has been fluctuating over time. Q1 and Q2 of 2022 saw relatively low DOH figures at 5.52 days and 8.57 days, respectively, indicating efficient inventory turnover during those periods. However, in subsequent quarters, the DOH increased, reaching as high as 13.33 days in Q3 2023.
Overall, a declining trend in the DOH is favorable as it suggests effective inventory management and potentially higher sales volume. On the other hand, a consistently high or increasing DOH could indicate excess inventory levels, slower sales, or potential challenges in managing inventory efficiently. It would be important for Planet Fitness to closely monitor and manage its inventory levels to optimize operational efficiency and profitability.