Planet Fitness Inc (PLNT)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.99 | 7.99 | 8.61 | 9.26 | 9.97 | |
| Number of days of payables | days | 60.90 | 45.69 | 42.39 | 39.41 | 36.60 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.99
= 60.90
The number of days of payables for Planet Fitness Inc have shown an increasing trend over the past five years, from 36.60 days as of December 31, 2020, to 60.90 days as of December 31, 2024. This suggests that the company is taking longer to pay its suppliers and vendors, which may indicate potential liquidity constraints or changes in the company's payment policies.
A rising number of days of payables could also signify bargaining power with suppliers, as the company is able to negotiate longer payment terms. However, a significant increase in this ratio may also raise concerns about the company's ability to manage its working capital effectively in the long run.
Overall, monitoring the trend of the number of days of payables is crucial in assessing Planet Fitness Inc's financial health and its management of supplier and vendor relationships.