Planet Fitness Inc (PLNT)
Working capital 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 current assets | US$ in thousands | 588,019 | 471,817 | 555,531 | 662,414 | 566,816 |
| Total current liabilities | US$ in thousands | 282,495 | 251,329 | 244,530 | 176,610 | 111,895 |
| Working capital turnover | 3.86 | 4.47 | 2.75 | 1.05 | 0.72 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,180,040K ÷ ($588,019K – $282,495K)
= 3.86
The working capital turnover of Planet Fitness Inc has shown a significant improvement over the past five years. In December 2020, the ratio stood at 0.72, indicating that the company was generating revenue approximately 0.72 times for each dollar of working capital invested. By December 2024, the ratio had increased to 3.86, suggesting that for every dollar of working capital, the company was generating revenue almost 4 times.
This upward trend in the working capital turnover ratio reflects an efficient management of working capital and a better utilization of resources to drive revenue growth. The substantial increase in the ratio from 2020 to 2024 indicates a notable enhancement in efficiency in utilizing working capital to generate sales.
Overall, the improving working capital turnover ratio of Planet Fitness Inc demonstrates the company's ability to efficiently convert working capital into revenue, which could contribute to its financial health and operational performance.