Planet Fitness Inc (PLNT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 984,750 | 853,868 | 510,324 | 326,538 | 633,784 |
| Receivables | US$ in thousands | 56,276 | 66,688 | 44,449 | 38,662 | 52,441 |
| Receivables turnover | 17.50 | 12.80 | 11.48 | 8.45 | 12.09 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $984,750K ÷ $56,276K
= 17.50
The receivables turnover ratio for Planet Fitness Inc has shown a consistent upward trend over the past five years, indicating an improvement in the company's ability to collect its accounts receivable. In 2023, the receivables turnover ratio reached 19.04, compared to 14.05 in 2022, 13.21 in 2021, 10.52 in 2020, and 13.13 in 2019. This signifies that Planet Fitness Inc collected its receivables nearly 19 times in 2023, reflecting a more efficient collection process compared to previous years. A higher receivables turnover ratio is generally viewed as a positive indicator of a company's liquidity and operational efficiency. Overall, the increasing trend in receivables turnover suggests that Planet Fitness Inc has been successful in managing and collecting its receivables effectively.