Planet Fitness Inc (PLNT)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 293,150 | 298,783 | 246,961 | 301,707 | 275,842 | 308,970 | 236,144 | 460,425 | 409,840 | 404,463 | 383,511 | 471,176 | 545,909 | 527,346 | 469,137 | 445,606 | 439,478 | 419,658 | 423,553 | 547,494 |
| Short-term investments | US$ in thousands | 114,163 | 108,629 | 265,723 | 254,126 | 204,447 | 236,108 | 243,868 | — | 0 | — | — | — | — | 35,949 | 35,000 | 25,000 | — | — | — | — |
| Total current liabilities | US$ in thousands | 282,495 | 286,290 | 272,126 | 246,501 | 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 |
| Cash ratio | 1.44 | 1.42 | 1.88 | 2.25 | 1.91 | 2.00 | 1.75 | 1.84 | 1.68 | 1.57 | 1.46 | 1.45 | 3.09 | 3.52 | 3.73 | 4.09 | 3.93 | 3.49 | 3.15 | 3.04 |
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 shown fluctuating trends over the years based on the provided data. The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, started at a comfortable level of 3.04 as of March 31, 2020. It gradually increased to a peak of 4.09 as of March 31, 2021, indicating a strong ability to meet its short-term obligations.
However, from June 30, 2021, the cash ratio began to decrease, reaching a low of 1.42 as of September 30, 2024. This downward trend may signal potential liquidity challenges for the company in covering its short-term liabilities with available cash and cash equivalents.
It is important for stakeholders and investors to closely monitor the cash ratio of Planet Fitness Inc to assess its liquidity position and ability to meet its financial obligations in the short term. Fluctuations in the cash ratio could indicate changes in the company's financial health and may warrant further analysis to understand the factors driving these changes.