Planet Fitness Inc (PLNT)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 17.52 | 19.43 | 15.72 | 29.71 | 12.78 | 14.15 | 14.12 | 16.06 | 11.48 | 18.75 | 13.27 | 13.09 | 8.95 | 9.51 | 12.92 | 20.05 | 12.39 | 16.37 | 15.22 | 19.92 | |
| DSO | days | 20.83 | 18.79 | 23.22 | 12.28 | 28.55 | 25.79 | 25.84 | 22.73 | 31.79 | 19.46 | 27.51 | 27.89 | 40.78 | 38.37 | 28.25 | 18.20 | 29.47 | 22.30 | 23.98 | 18.32 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 17.52
= 20.83
To analyze the Days of Sales Outstanding (DSO) of Planet Fitness Inc over the past eight quarters, we observe a fluctuating trend. In Q1 2023, the DSO stood at 11.27 days, indicating a shorter collection period, which is a positive sign for the company's liquidity and efficiency in collecting receivables. However, this decreased efficiency was followed by a sharp increase in Q2 2023, where the DSO rose to 21.39 days, signifying a longer collection period.
Subsequently, in Q3 2023, there was a slight improvement as the DSO decreased to 17.33 days but remained higher than the Q1 2023 level. In Q4 2023, the DSO decreased further to 19.17 days, which is still higher compared to Q1 2023.
Comparing year-over-year, there has been a general improvement in DSO from Q4 2022 (25.98 days) to Q4 2023 (19.17 days), indicating enhanced efficiency in collections over the period. However, it is important to note the quarter-over-quarter fluctuations in DSO, which suggest variability in the company's collection practices and effectiveness in managing accounts receivable.
Overall, while there has been progress in managing DSO on a year-over-year basis, the company should focus on maintaining a consistent and efficient collection process to ensure optimal liquidity and working capital management.