Planet Fitness Inc (PLNT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 83.30% | 80.70% | 51.27% | 49.38% | 40.78% |
| Operating profit margin | 27.47% | 27.71% | 26.95% | 28.10% | 18.30% |
| Pretax margin | 20.38% | 19.99% | 17.56% | 9.49% | -4.38% |
| Net profit margin | 14.58% | 14.05% | 11.64% | 8.38% | -4.59% |
Planet Fitness Inc's profitability has shown a positive trend over the years as indicated by its key profitability ratios. The gross profit margin has steadily increased from 40.78% in 2020 to 83.30% in 2024, reflecting the company's ability to effectively manage its production costs and increase revenue generation.
The operating profit margin has also shown improvement, rising from 18.30% in 2020 to 27.47% in 2024, demonstrating the company's efficiency in controlling its operating expenses and generating profits from its core business operations.
Furthermore, the pretax margin has consistently increased from -4.38% in 2020 to 20.38% in 2024, indicating Planet Fitness Inc's ability to generate profits before accounting for taxes, showcasing strong operational performance and prudent financial management.
Lastly, the net profit margin has shown a similar positive trend, climbing from -4.59% in 2020 to 14.58% in 2024, highlighting the company's ability to convert revenue into net income and enhance overall profitability.
Overall, Planet Fitness Inc's profitability ratios reflect a strong financial performance and efficient management of resources, suggesting a positive outlook for the company's future growth and profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.56% | 9.19% | 8.06% | 7.11% | 3.23% |
| Return on assets (ROA) | 5.60% | 4.66% | 3.48% | 2.12% | -0.81% |
| Return on total capital | 16.77% | 15.34% | 13.41% | 11.84% | 6.49% |
| Return on equity (ROE) | — | — | — | — | — |
Planet Fitness Inc has shown improving profitability over the past few years based on its profitability ratios.
1. Operating return on assets (Operating ROA) has increased from 3.23% in 2020 to 10.56% in 2024. This indicates that the company's operating activities are generating a higher return relative to the total assets deployed.
2. Return on assets (ROA) has moved from -0.81% in 2020 to 5.60% in 2024. This suggests that the company is becoming more efficient in generating profits from its assets.
3. Return on total capital has seen a steady increase from 6.49% in 2020 to 16.77% in 2024. This shows that the company's overall capital structure is becoming more profitable.
4. Return on equity (ROE) data is not available. ROE would have provided insights into the profitability of the company for its equity shareholders.
Overall, the trend in profitability ratios for Planet Fitness Inc shows an improving financial performance, indicating effective management of assets and capital to generate higher returns over the years.