Planet Fitness Inc (PLNT)

Total asset 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
Revenue (ttm)	US$ in thousands	986,001	984,910	952,853	891,685	852,544	755,272	666,937	580,823	510,272	479,125	428,591	330,645	346,043	403,782	472,257	622,556	649,563	632,412	600,132	572,191
Total assets	US$ in thousands	2,969,690	2,944,850	2,848,240	2,905,560	2,854,590	2,846,260	2,884,090	2,992,400	2,015,980	1,949,700	1,899,600	1,864,980	1,849,740	1,801,550	1,800,040	1,875,640	1,717,190	1,420,230	1,523,470	1,509,590
Total asset turnover		0.33	0.33	0.33	0.31	0.30	0.27	0.23	0.19	0.25	0.25	0.23	0.18	0.19	0.22	0.26	0.33	0.38	0.45	0.39	0.38

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $986,001K ÷ $2,969,690K
= 0.33

Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. The trend analysis of Planet Fitness Inc's total asset turnover reveals a consistent performance in the recent quarters. The company's total asset turnover ratio remained stable at around 0.36 in Q4 2023, Q3 2023, and Q2 2023, indicating that for every dollar of assets owned, Planet Fitness Inc generated $0.36 in sales revenue.

Comparing these figures to previous quarters, there was a slight increase in total asset turnover from 0.33 in Q1 2023 to 0.36 in the subsequent quarters of 2023. This improvement suggests that the company has enhanced its efficiency in utilizing its assets to drive sales. The total asset turnover has shown a positive trend over the past four quarters, reflecting improved operational efficiency and effective asset utilization by Planet Fitness Inc.

Furthermore, the company's total asset turnover has significantly increased compared to the same periods in 2022, where the ratio ranged from 0.22 in Q1 2022 to 0.33 in Q4 2022. This substantial improvement indicates that Planet Fitness Inc has enhanced its ability to generate sales revenue relative to its asset base over time.

Overall, the consistent performance and upward trend in total asset turnover suggest that Planet Fitness Inc has been effective in optimizing its asset utilization and operational efficiency, which bodes well for its financial performance and profitability.