Planet Fitness Inc (PLNT)
Payables 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 |
| Payables | US$ in thousands | 32,887 | 31,844 | 29,728 | 20,560 | 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 |
| Payables turnover | 5.99 | 5.47 | 6.13 | 9.22 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $197,122K ÷ $32,887K
= 5.99
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its suppliers within a certain period. A higher payables turnover ratio usually indicates that the company is paying its suppliers more quickly.
Based on the provided data for Planet Fitness Inc, the payables turnover ratio has fluctuated over the years. As of December 31, 2024, the payables turnover ratio stood at 5.99, indicating that Planet Fitness Inc paid its suppliers approximately 5.99 times during that period.
Analyzing the trend of the payables turnover ratio for Planet Fitness Inc over the years, we can see some variability in the ratio. For instance, there were significant fluctuations in the ratio between March 31, 2020, and September 30, 2022, with values ranging from 4.83 to 13.87. This variability suggests that the company may have changed its payment terms or management of accounts payable during this period.
Furthermore, the company showed relatively stable payables turnover ratios from June 30, 2022, to December 31, 2024, with values ranging from 5.47 to 9.22. This stability may indicate consistent payment practices and strong supplier relationships during this period.
In conclusion, the payables turnover ratio for Planet Fitness Inc has shown fluctuations over the years, indicating changes in the company's accounts payable management strategies and supplier relationships. It would be essential for investors and stakeholders to monitor this ratio along with other financial metrics to assess the overall operational efficiency and financial health of the company.