Planet Fitness Inc (PLNT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 293,150 | 275,842 | 409,840 | 545,909 | 439,478 |
| Short-term investments | US$ in thousands | 114,163 | 204,447 | 0 | — | — |
| Total current liabilities | US$ in thousands | 282,495 | 251,329 | 244,530 | 176,610 | 111,895 |
| Cash ratio | 1.44 | 1.91 | 1.68 | 3.09 | 3.93 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($293,150K
+ $114,163K)
÷ $282,495K
= 1.44
The cash ratio of Planet Fitness Inc has displayed some fluctuations over the past five years. As of December 31, 2020, the cash ratio stood at 3.93, indicating that the company had $3.93 in cash and cash equivalents for every $1 of current liabilities. Subsequently, the ratio decreased to 3.09 by December 31, 2021, suggesting a slightly lower liquidity position.
However, there was a notable decline in the cash ratio to 1.68 by December 31, 2022, signaling that the company had less available cash to cover its short-term obligations. The ratio saw a slight improvement to 1.91 by December 31, 2023, indicating a modest increase in liquidity.
By December 31, 2024, the cash ratio further decreased to 1.44, indicating a lower level of liquidity compared to the previous year. Overall, the trend in the cash ratio suggests some fluctuations in Planet Fitness Inc's ability to meet its short-term liabilities with its available cash and cash equivalents during the period under consideration.