Planet Fitness Inc (PLNT)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 293,150 | 298,783 | 246,961 | 301,707 | 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 |
| Short-term investments | US$ in thousands | 114,163 | 108,629 | 265,723 | 254,126 | 204,447 | 236,108 | 243,868 | — | 0 | — | — | — | — | 35,949 | 35,000 | 25,000 | — | — | — | — |
| Receivables | US$ in thousands | 96,537 | 56,840 | 56,724 | 37,674 | 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 |
| 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 |
| Quick ratio | 1.78 | 1.62 | 2.09 | 2.41 | 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 |
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 relatively stable trend over the past few years, ranging from a high of 4.30 on March 31, 2021, to a low of 1.56 on March 31, 2022. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets, excluding inventory.
During the period under review, the quick ratio gradually decreased from March 31, 2021, to December 31, 2022, indicating a potential liquidity concern as the company may have had fewer liquid assets to cover its short-term obligations. It is worth noting that a quick ratio above 1.0 is generally considered healthy, as it indicates the company can meet its short-term obligations without relying on selling inventory.
While the quick ratio increased from March 31, 2023, to March 31, 2024, reaching a high of 2.41, it decreased to 1.62 on September 30, 2024, potentially signaling a temporary liquidity challenge or a shift in the company's liquidity management strategy.
In conclusion, the quick ratio of Planet Fitness Inc has fluctuated over the years, with some periods indicating stronger liquidity positions than others. Further analysis of the company's financial health and operational efficiency would be necessary to fully assess its ability to meet short-term obligations.