Planet Fitness Inc (PLNT)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 794,724 | 437,793 | 251,991 | 133,166 | 439,335 |
| Revenue | US$ in thousands | 984,750 | 853,868 | 510,324 | 326,538 | 633,784 |
| Gross profit margin | 80.70% | 51.27% | 49.38% | 40.78% | 69.32% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $794,724K ÷ $984,750K
= 80.70%
The gross profit margin of Planet Fitness Inc has been relatively stable over the past five years, ranging from 71.77% in 2019 to 82.80% in 2021. This margin indicates that the company is able to efficiently generate revenue after accounting for the cost of goods sold. In particular, the slight fluctuations in the range of 81% to 83% suggest that the company has been able to maintain a strong pricing strategy and effective cost management. Overall, the consistently high gross profit margin of Planet Fitness Inc demonstrates its ability to effectively control production costs and generate profits from its core operations.