Planet Fitness Inc (PLNT)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 471,817 | 555,531 | 662,414 | 566,816 | 540,138 |
| Total current liabilities | US$ in thousands | 251,329 | 244,530 | 176,610 | 111,895 | 145,478 |
| Current ratio | 1.88 | 2.27 | 3.75 | 5.07 | 3.71 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $471,817K ÷ $251,329K
= 1.88
The current ratio of Planet Fitness Inc has exhibited some fluctuations over the past five years. As of December 31, 2023, the current ratio stands at 1.88, indicating a decline from the prior year. This ratio suggests that the company may have slightly less short-term assets available to cover its current liabilities compared to the previous year.
Comparing this figure to historical data, it is evident that the current ratio has been varying significantly. In 2021, the company had a current ratio of 3.75, which was significantly higher than the current ratio in 2020 and 2019. This indicates a stronger liquidity position in 2021, with ample short-term assets to cover current obligations.
However, the current ratio trended downwards in 2022 and 2023, raising some concerns about the company's ability to meet its short-term liabilities using its current assets. A current ratio of 1.88 in 2023 may suggest a potential liquidity challenge, but further analysis is required to assess the company's overall financial health and ability to meet its short-term obligations.
It is important to note that while the current ratio provides insights into short-term liquidity, it should be used in conjunction with other financial metrics and qualitative factors to gain a comprehensive understanding of the company's financial position.