Planet Fitness Inc (PLNT)
Payables 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 |
Payables | US$ in thousands | 23,788 | 28,364 | 29,461 | 16,961 | 20,578 | 22,218 | 22,312 | 24,147 | 27,892 | 21,703 | 18,124 | 14,561 | 19,388 | 19,783 | 11,461 | 37,640 | 21,267 | 23,037 | 16,277 | 23,060 |
Payables turnover | 7.99 | 7.27 | 6.83 | 10.27 | 8.61 | 13.87 | 12.85 | 11.29 | 9.26 | 9.28 | 10.46 | 12.33 | 9.97 | 5.31 | 11.86 | 4.83 | 9.14 | 8.58 | 11.57 | 7.40 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $190,027K ÷ $23,788K
= 7.99
The payables turnover ratio measures how efficiently a company is managing its accounts payable by indicating how many times the company pays off its suppliers in a given period.
Analyzing the payables turnover ratio data for Planet Fitness Inc over the last eight quarters, we observe fluctuating values. In Q1 2022, the company had a relatively lower payables turnover of 4.78, indicating that it took longer to pay off its suppliers compared to the following quarters. The ratio then steadily increased in subsequent quarters, reaching a peak of 10.27 in Q1 2023, suggesting that the company was paying off its payables more frequently.
However, in Q2 and Q3 2023, there was a slight decline in the payables turnover ratio to 6.83 and 7.27, respectively. This could imply that Planet Fitness Inc took slightly longer to pay off its suppliers during these periods compared to the peak in Q1 2023.
Overall, the company's payables turnover has shown some variability over the past eight quarters, with fluctuations that may indicate changes in the company's payment policies or supplier relationships. Further analysis and comparison with industry benchmarks would provide a clearer understanding of Planet Fitness Inc's payables management efficiency.