Planet Fitness Inc (PLNT)
Working capital 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 current assets | US$ in thousands | 471,817 | 540,119 | 505,339 | 588,759 | 555,531 | 540,471 | 523,382 | 615,635 | 662,414 | 629,112 | 581,255 | 556,194 | 566,816 | 561,130 | 581,481 | 664,470 | 540,138 | 306,270 | 424,123 | 417,436 |
| Total current liabilities | US$ in thousands | 251,329 | 272,846 | 274,414 | 250,223 | 244,530 | 258,139 | 263,556 | 326,003 | 176,610 | 160,185 | 135,079 | 115,189 | 111,895 | 120,365 | 134,578 | 180,164 | 145,478 | 135,921 | 125,424 | 134,475 |
| Working capital turnover | 4.47 | 3.69 | 4.13 | 2.63 | 2.74 | 2.68 | 2.57 | 2.01 | 1.05 | 1.02 | 0.96 | 0.75 | 0.76 | 0.92 | 1.06 | 1.29 | 1.65 | 3.71 | 2.01 | 2.02 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $986,001K ÷ ($471,817K – $251,329K)
= 4.47
The working capital turnover for Planet Fitness Inc has fluctuated over the past eight quarters, ranging from 2.29 to 4.86. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue.
A higher working capital turnover ratio indicates that the company is effectively using its working capital to support sales growth. Planet Fitness Inc's working capital turnover has shown an improving trend, with the ratio peaking in Q4 2023 at 4.86, indicating that the company generated $4.86 in revenue for every dollar of working capital invested.
Overall, the increasing trend in the working capital turnover ratio suggests that Planet Fitness Inc has been able to optimize its working capital management and improve its operational efficiency in generating sales. However, it is important to conduct further analysis in conjunction with other financial metrics to get a comprehensive view of the company's financial performance and efficiency.