Planet Fitness Inc (PLNT)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 588,019 | 471,817 | 555,531 | 662,414 | 566,816 |
| Total current liabilities | US$ in thousands | 282,495 | 251,329 | 244,530 | 176,610 | 111,895 |
| Current ratio | 2.08 | 1.88 | 2.27 | 3.75 | 5.07 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $588,019K ÷ $282,495K
= 2.08
The current ratio of Planet Fitness Inc has exhibited a declining trend over the past few years, moving from 5.07 in December 2020 to 2.08 in December 2024. This ratio indicates a company's ability to cover its short-term obligations with its current assets. A higher current ratio is generally considered more favorable as it suggests a stronger ability to meet short-term liabilities.
While Planet Fitness Inc's current ratio remains above 1, signaling that the company has sufficient current assets to cover its short-term liabilities, the decreasing trend raises some concerns about its liquidity position. A ratio of 2.08 as of December 2024 suggests the company may have slightly less liquidity than in previous years, which could potentially impact its ability to address short-term financial obligations.
It is important for investors and analysts to monitor trends in the current ratio to assess a company's liquidity and ability to manage short-term financial pressures effectively. Further analysis of the components of current assets and liabilities may provide additional insights into the factors driving the changes in Planet Fitness Inc's current ratio.