Planet Fitness Inc (PLNT)
Total asset 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 |
| Total assets | US$ in thousands | 2,969,690 | 2,854,590 | 2,015,980 | 1,849,740 | 1,717,190 |
| Total asset turnover | 0.33 | 0.30 | 0.25 | 0.18 | 0.37 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $984,750K ÷ $2,969,690K
= 0.33
Planet Fitness Inc's total asset turnover has shown varying trends over the past five years. The ratio has fluctuated between 0.22 and 0.40 during this period. The total asset turnover ratio measures the efficiency of the company in generating sales revenue from its total assets.
A higher total asset turnover ratio indicates that the company is generating more revenue relative to its total assets, which is generally seen as a positive sign of efficiency. Conversely, a lower ratio suggests that the company may not be utilizing its assets effectively to generate sales.
In this case, we see that Planet Fitness Inc's total asset turnover has generally been on the lower side, ranging from 0.22 to 0.40. This could suggest that the company may not be efficiently utilizing its assets to generate sales revenue compared to its industry peers. It is important for the company to analyze the factors contributing to this trend and consider ways to improve asset utilization efficiency in order to enhance overall financial performance.