Planet Fitness Inc (PLNT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.70% | 51.27% | 49.38% | 40.78% | 69.32% |
| Operating profit margin | 27.71% | 26.95% | 28.10% | 18.30% | 36.78% |
| Pretax margin | 19.99% | 17.56% | 9.49% | -4.38% | 24.53% |
| Net profit margin | 14.05% | 11.64% | 8.38% | -4.59% | 18.57% |
Planet Fitness Inc's profitability ratios have shown some fluctuations over the past five years.
The gross profit margin has generally remained strong, averaging around 80-83%, indicating that the company efficiently manages its production costs. The increasing trend from 2019 to 2021 suggests improvements in cost control and pricing strategies.
The operating profit margin has also shown a generally positive trend, with a slight dip in 2020 but a recovery and increase in subsequent years. This indicates that the company has been effectively managing its operating expenses and generating profits from its core operations.
The pretax margin has been more volatile, with a significant negative figure in 2020. However, there has been a notable recovery since then, with the ratio reaching 19.19% in 2023. This suggests that the company's pre-tax profitability has improved, possibly due to cost management and revenue growth initiatives.
The net profit margin, which reflects the company's bottom-line profitability after all expenses, has shown a similar trend to the pretax margin. The negative figure in 2020 indicates a loss, but there has been a significant recovery since then, with the ratio reaching 12.91% in 2023. This indicates that the company has been able to efficiently manage its expenses and generate profits for its shareholders.
Overall, despite some fluctuations, Planet Fitness Inc's profitability ratios show a positive trend in recent years, suggesting that the company has been successful in improving its overall profitability and financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.19% | 8.06% | 7.11% | 3.23% | 13.57% |
| Return on assets (ROA) | 4.66% | 3.48% | 2.12% | -0.81% | 6.85% |
| Return on total capital | 15.34% | 13.41% | 11.84% | 6.49% | 22.05% |
| Return on equity (ROE) | — | — | — | — | — |
Planet Fitness Inc's profitability ratios have shown fluctuations over the past five years.
The Operating Return on Assets (Operating ROA) has generally improved from 2019 to 2023, indicating that the company has been generating a higher operating income relative to its assets in recent years. The increase in Operating ROA from 3.47% in 2020 to 9.54% in 2023 suggests that Planet Fitness Inc has been more efficient in utilizing its assets to generate operating profits.
The Return on Assets (ROA) has also shown improvement over the years, with the ratio turning negative in 2020 to positive values in subsequent years. This indicates that the company has been able to generate profits from its assets, with the ratio reaching 4.66% in 2023.
Return on Total Capital has fluctuated, peaking at 23.53% in 2019 and showing a downward trend in the following years. However, the ratio increased to 15.06% in 2023, indicating that the company has been able to generate returns for both equity and debt holders relative to the total capital employed.
Unfortunately, Return on Equity (ROE) data is not available for analysis in the provided table. Nonetheless, based on the other profitability ratios, it can be inferred that Planet Fitness Inc has made progress in improving its overall profitability and efficiency in recent years.