Planet Fitness Inc (PLNT)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 588,019 | 556,444 | 493,850 | 520,782 | 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 |
| Total current liabilities | US$ in thousands | 282,495 | 286,290 | 272,126 | 246,501 | 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 |
| Current ratio | 2.08 | 1.94 | 1.81 | 2.11 | 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 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $588,019K ÷ $282,495K
= 2.08
Planet Fitness Inc's current ratio has shown fluctuations over the past few years. As of December 31, 2024, the current ratio was 2.08, indicating that the company had $2.08 in current assets for every $1 of current liabilities.
The current ratio had been steadily increasing from March 31, 2020, to December 31, 2021, reaching a peak of 5.07, which signifies a strong liquidity position during that period. However, there was a noticeable decline in the current ratio from March 31, 2022, to June 30, 2023, dropping to as low as 1.81, which could raise concerns about the company's ability to cover its short-term obligations.
Subsequently, there was a slight improvement in the current ratio towards the end of 2024, reaching 2.08. While the current ratio indicates the company's short-term liquidity and ability to meet its current liabilities, it is essential to monitor fluctuations to assess any potential financial risks or operational challenges that Planet Fitness Inc may face in the future.