Planet Fitness Inc (PLNT)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 986,001 | 984,910 | 952,853 | 891,685 | 852,544 | 755,272 | 666,937 | 580,823 | 510,272 | 479,125 | 428,591 | 330,645 | 346,043 | 403,782 | 472,257 | 622,556 | 649,563 | 632,412 | 600,132 | 572,191 |
| Property, plant and equipment | US$ in thousands | 390,226 | 663,238 | 620,542 | 595,281 | 576,319 | 537,003 | 523,918 | 501,956 | 325,761 | 302,864 | 288,463 | 161,731 | 160,677 | 159,053 | 149,624 | 145,114 | 145,481 | 131,454 | 118,517 | 114,676 |
| Fixed asset turnover | 2.53 | 1.49 | 1.54 | 1.50 | 1.48 | 1.41 | 1.27 | 1.16 | 1.57 | 1.58 | 1.49 | 2.04 | 2.15 | 2.54 | 3.16 | 4.29 | 4.46 | 4.81 | 5.06 | 4.99 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $986,001K ÷ $390,226K
= 2.53
Fixed asset turnover measures how efficiently a company generates revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
Looking at the trend in Planet Fitness Inc's fixed asset turnover over the past eight quarters, we observe that the ratio has been consistently increasing from Q1 2022 to Q3 2023. This indicates an improvement in the company's efficiency in generating revenue from its fixed assets over this period.
The ratios have ranged from 1.99 to 2.98, with the highest ratio of 2.98 recorded in Q2 2023. This suggests that Planet Fitness Inc generated $2.98 in revenue for every dollar invested in fixed assets during that quarter, reflecting strong asset utilization and operational efficiency.
Overall, the increasing trend in fixed asset turnover ratio for Planet Fitness Inc indicates positive performance in efficiently utilizing its fixed assets to generate sales, which is a favorable sign for investors and stakeholders assessing the company's operational efficiency.