Planet Fitness Inc (PLNT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 984,750 | 853,868 | 510,324 | 326,538 | 633,784 |
| Property, plant and equipment | US$ in thousands | 390,226 | 576,319 | 325,761 | 160,677 | 145,481 |
| Fixed asset turnover | 2.52 | 1.48 | 1.57 | 2.03 | 4.36 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $984,750K ÷ $390,226K
= 2.52
The fixed asset turnover ratio for Planet Fitness Inc has been fluctuating over the past five years, ranging from 2.53 to 4.73. This ratio indicates how efficiently the company is generating revenue from its fixed assets.
A higher fixed asset turnover ratio signifies that the company is using its fixed assets more effectively to generate sales. In the case of Planet Fitness Inc, the ratios for 2021 and 2019 were relatively higher at 3.38 and 4.73 respectively, suggesting better utilization of fixed assets during those periods.
On the other hand, the ratios for 2020 and 2022 were lower at 2.53 and 2.69, indicating a potential decrease in efficiency in generating sales from fixed assets during those years. However, the ratio improved again in 2023 to 2.74, which may signal improved asset productivity during that year.
Overall, despite some fluctuations, Planet Fitness Inc has maintained a relatively healthy fixed asset turnover ratio over the past five years, indicating a reasonable efficiency in generating revenue from its fixed assets.