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
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.