Planet Fitness Inc (PLNT)
Current 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 | ||
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Total current assets | US$ in thousands | 471,817 | 540,119 | 505,339 | 588,759 | 555,531 | 540,471 | 523,382 | 615,635 | 662,414 | 629,112 | 581,255 | 556,194 | 566,816 | 561,130 | 581,481 | 664,470 | 540,138 | 306,270 | 424,123 | 417,436 |
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 |
Current ratio | 1.88 | 1.98 | 1.84 | 2.35 | 2.27 | 2.09 | 1.99 | 1.89 | 3.75 | 3.93 | 4.30 | 4.83 | 5.07 | 4.66 | 4.32 | 3.69 | 3.71 | 2.25 | 3.38 | 3.10 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $471,817K ÷ $251,329K
= 1.88
Planet Fitness Inc's current ratio has shown some fluctuations over the past eight quarters. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
In Q4 2023, the current ratio stood at 1.88, indicating that the company had $1.88 in current assets for every $1 in current liabilities. This ratio decreased slightly from the previous quarter but remained relatively healthy, suggesting that Planet Fitness Inc had a strong liquidity position.
The current ratio peaked in Q1 2023 at 2.35, demonstrating a significant increase in the company's ability to cover its short-term liabilities with current assets. This may indicate efficient management of working capital during that period.
Overall, the company's current ratio has generally remained above 1.5, which is considered a healthy benchmark for most industries. However, analysts should continue to monitor future trends to assess the company's ongoing liquidity position and ability to meet its short-term obligations.