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.