Planet Fitness Inc (PLNT)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,180,040 | 984,750 | 853,868 | 510,324 | 326,538 |
| Total assets | US$ in thousands | 3,069,710 | 2,969,690 | 2,854,590 | 2,015,980 | 1,849,740 |
| Total asset turnover | 0.38 | 0.33 | 0.30 | 0.25 | 0.18 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,180,040K ÷ $3,069,710K
= 0.38
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. For Planet Fitness Inc, we can observe a positive trend in the total asset turnover ratio over the years.
In December 31, 2020, the total asset turnover ratio stood at 0.18, indicating that the company generated $0.18 in sales for every dollar of total assets. Over the subsequent years, there has been a steady improvement in this ratio, reaching 0.38 by December 31, 2024.
The increasing trend in total asset turnover suggests that Planet Fitness Inc has been more effective in utilizing its assets to drive sales growth. This could be attributed to better asset management, operational efficiency, or increased productivity within the organization.
A higher total asset turnover ratio signifies better asset utilization and efficiency, which can lead to improved profitability and overall financial performance for the company. Planet Fitness Inc's rising total asset turnover ratio reflects positively on its ability to generate revenue relative to its asset base and indicates a positive trend in the company's operational efficiency and financial health.