Planet Fitness Inc (PLNT)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 293,150 | 275,842 | 409,840 | 545,909 | 439,478 |
| Short-term investments | US$ in thousands | 114,163 | 204,447 | 0 | — | — |
| Receivables | US$ in thousands | 96,537 | 56,276 | 66,688 | 44,449 | 38,662 |
| Total current liabilities | US$ in thousands | 282,495 | 251,329 | 244,530 | 176,610 | 111,895 |
| Quick ratio | 1.78 | 2.13 | 1.95 | 3.34 | 4.27 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($293,150K
+ $114,163K
+ $96,537K)
÷ $282,495K
= 1.78
The quick ratio of Planet Fitness Inc has shown a decreasing trend over the years from 2020 to 2024. In 2020, the quick ratio was 4.27, indicating a strong ability to meet short-term liabilities using its most liquid assets. However, this ratio decreased to 3.34 in 2021, 1.95 in 2022, 2.13 in 2023, and 1.78 in 2024, pointing to a reduction in the company's ability to cover its short-term obligations with its quick assets. A quick ratio below 1 suggests potential liquidity issues, so it is important for Planet Fitness to monitor and manage its liquidity position to ensure it can meet its short-term financial obligations efficiently.