Planet Fitness Inc (PLNT)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 324,198 | 272,864 | 230,078 | 143,395 | 59,760 |
| Revenue | US$ in thousands | 1,180,040 | 984,750 | 853,868 | 510,324 | 326,538 |
| Operating profit margin | 27.47% | 27.71% | 26.95% | 28.10% | 18.30% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $324,198K ÷ $1,180,040K
= 27.47%
Based on the data provided, Planet Fitness Inc's operating profit margin has shown a positive trend over the past five years, increasing from 18.30% on December 31, 2020, to 27.47% on December 31, 2024. This indicates that the company has been able to improve its efficiency in generating profits from its core operations over the period analyzed.
The operating profit margin is a key indicator of a company's operational efficiency and profitability. It measures the percentage of revenue that translates into operating profit after accounting for the cost of goods sold and operating expenses. The higher the operating profit margin, the better a company is at controlling its costs and managing its operational assets to generate profit.
Planet Fitness Inc's consistent improvement in operating profit margin suggests that the company has been successful in managing its costs and increasing operational efficiency over the years. This positive trend may be attributed to various factors such as effective cost management, operational improvements, revenue growth, or a combination of these factors.
Overall, the increasing trend in Planet Fitness Inc's operating profit margin indicates the company's ability to generate more profit from its core operations, which can be a positive sign for investors and stakeholders interested in the company's financial performance and operational effectiveness.