Planet Fitness Inc (PLNT)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 197,122 | 174,093 | 182,143 | 189,666 | 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 |
| Inventory | US$ in thousands | 6,146 | 4,858 | 5,200 | 4,959 | 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 |
| Inventory turnover | 32.07 | 35.84 | 35.03 | 38.25 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $197,122K ÷ $6,146K
= 32.07
The inventory turnover ratio for Planet Fitness Inc fluctuated over the period from March 31, 2020, to December 31, 2024. The inventory turnover measures how efficiently the company is managing its inventory by indicating how many times a company's inventory is sold and replaced over a specific period.
From March 2020 to March 2021, the inventory turnover ratio showed a significant improvement, increasing from 64.47 to 383.57. This rapid increase indicates that the company was selling its inventory at a much faster rate.
Subsequently, the ratio decreased in the following quarters but remained relatively high compared to the initial values. This suggests that Planet Fitness Inc was still effectively managing its inventory turnover.
By December 2024, the inventory turnover ratio decreased to 32.07, signaling a slower rate of inventory turnover compared to the peak in March 2021. However, it is essential to consider industry norms and the company's specific circumstances when evaluating the significance of this decrease.
Overall, fluctuations in the inventory turnover ratio of Planet Fitness Inc indicate changes in inventory management practices and sales efficiency over the analyzed period. Investors and stakeholders may use this ratio to assess the company's operational efficiency and effectiveness in managing its inventory levels.