Planet Fitness Inc (PLNT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 17.50 | 12.80 | 11.48 | 8.45 | 12.09 | |
| DSO | days | 20.86 | 28.51 | 31.79 | 43.22 | 30.20 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 17.50
= 20.86
Planet Fitness Inc's Days Sales Outstanding (DSO) has shown a decreasing trend over the past five years, from 27.79 days in 2019 to 19.17 days in 2023. This indicates that the company has been able to collect its accounts receivable more efficiently over the years. A lower DSO suggests that Planet Fitness is managing its accounts receivables better, converting sales into cash more quickly, and potentially reducing the risk of bad debts. Overall, the declining trend in DSO is a positive sign of the company's effectiveness in managing its credit and collection policies, contributing to its liquidity and operational efficiency.