Planet Fitness Inc (PLNT)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 275,842 | 308,970 | 236,144 | 460,425 | 409,840 | 404,463 | 383,511 | 471,176 | 545,909 | 527,346 | 469,137 | 445,606 | 439,478 | 419,658 | 423,553 | 547,494 | 436,256 | 219,752 | 330,550 | 335,961 |
| Short-term investments | US$ in thousands | 204,447 | 236,108 | 243,868 | — | 0 | — | — | — | — | 35,949 | 35,000 | 25,000 | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 56,276 | 50,699 | 60,614 | 30,009 | 66,688 | 53,375 | 47,219 | 36,177 | 44,449 | 25,550 | 32,306 | 25,268 | 38,662 | 42,448 | 36,552 | 31,051 | 52,441 | 38,630 | 39,432 | 28,724 |
| 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 |
| Quick ratio | 2.13 | 2.18 | 1.97 | 1.96 | 1.95 | 1.77 | 1.63 | 1.56 | 3.34 | 3.68 | 3.97 | 4.30 | 4.27 | 3.84 | 3.42 | 3.21 | 3.36 | 1.90 | 2.95 | 2.71 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($275,842K
+ $204,447K
+ $56,276K)
÷ $251,329K
= 2.13
The quick ratio measures Planet Fitness Inc's ability to meet its short-term obligations with its most liquid assets.
The quick ratio fluctuated over the past eight quarters, ranging from 1.59 to 2.08. In Q4 2023, the quick ratio was 1.67, indicating that the company had $1.67 in liquid assets available to cover each dollar of its current liabilities. This suggests a relatively healthy liquidity position, although it decreased compared to the previous quarter's 1.78.
Overall, the quick ratio has generally been above 1, implying that Planet Fitness Inc has had sufficient liquid assets to cover its short-term liabilities. A quick ratio above 1 is usually considered a positive sign as it shows that the company can meet its current obligations without having to rely on selling inventory or other less liquid assets.
However, it is essential to consider industry benchmarks and specific business circumstances when interpreting the quick ratio. While the fluctuations in the quick ratio may indicate changes in the company's liquidity position, further analysis and comparison with industry peers would provide a more comprehensive understanding of Planet Fitness Inc's financial health.