Planet Fitness Inc (PLNT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 436,256 | 219,752 | 330,550 | 335,961 |
| Short-term investments | US$ in thousands | 204,447 | 236,108 | 243,868 | — | 0 | — | — | — | — | 35,949 | 35,000 | 25,000 | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 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 | 3.00 | 1.62 | 2.64 | 2.50 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($275,842K
+ $204,447K)
÷ $251,329K
= 1.91
The cash ratio of Planet Fitness Inc has fluctuated over the past eight quarters, ranging from 1.37 to 1.96. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A cash ratio above 1 indicates that the company has enough cash to cover its current liabilities.
In the latest quarter, Q4 2023, the cash ratio stands at 1.45, indicating that the company has $1.45 in cash and cash equivalents for every $1 of current liabilities. This suggests that Planet Fitness Inc has a strong liquidity position and is capable of meeting its short-term obligations using its available cash resources.
It is noteworthy that the cash ratio has slightly decreased from the previous quarter, Q3 2023, where it was 1.60. This could be a result of changes in the company's cash holdings or an increase in current liabilities during the period. Despite the slight decrease, the cash ratio remains above 1, indicating a healthy liquidity position for Planet Fitness Inc.
Overall, the trend in Planet Fitness Inc's cash ratio demonstrates a consistent ability to manage short-term financial obligations with its cash reserves, providing a level of financial stability and flexibility for the company.