Planet Fitness Inc (PLNT)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 190,027 | 206,326 | 201,106 | 174,193 | 177,200 | 308,190 | 286,756 | 272,709 | 258,333 | 201,326 | 189,531 | 179,512 | 193,373 | 105,004 | 135,896 | 181,809 | 194,449 | 197,603 | 188,280 | 170,633 |
| Inventory | US$ in thousands | 4,677 | 7,536 | 6,854 | 4,996 | 5,266 | 4,224 | 3,040 | 1,745 | 1,155 | 4,099 | 1,197 | 468 | 473 | 1,806 | 2,778 | 2,820 | 877 | 2,612 | 2,513 | 3,445 |
| 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 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $190,027K ÷ $4,677K
= 40.63
Inventory turnover ratio is a crucial metric that indicates how effectively a company manages its inventory levels. A higher inventory turnover implies that the company is selling its products quickly and efficiently.
Looking at the inventory turnover figures for Planet Fitness Inc over the past eight quarters shows some fluctuations. In Q1 2022, the ratio was the highest at 66.11, indicating that the company sold and replaced its inventory multiple times during the quarter. However, in the subsequent quarters, there was a downward trend in inventory turnover, reaching its lowest point of 27.38 in Q3 2023.
The recent increase in inventory turnover from Q3 2023 to Q4 2023 (from 27.38 to 40.63) is a positive sign, suggesting an improvement in inventory management efficiency. It indicates that the company is selling its inventory at a faster rate, possibly due to increased demand or more effective inventory control measures.
Overall, the inventory turnover ratios for Planet Fitness Inc show variability, but the recent uptick in Q4 2023 suggests that the company is heading towards better inventory management practices. Monitoring this ratio in the upcoming quarters will be crucial to assess the effectiveness of the company's inventory control strategies.