Planet Fitness Inc (PLNT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 3,069,710 | 2,969,690 | 2,854,590 | 2,015,980 | 1,849,740 |
| Operating ROA | 10.56% | 9.19% | 8.06% | 7.11% | 3.23% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $324,198K ÷ $3,069,710K
= 10.56%
Planet Fitness Inc's operating return on assets (ROA) has shown a positive trend over the past few years, increasing from 3.23% on December 31, 2020, to 10.56% on December 31, 2024. This signifies an improvement in the company's efficiency in generating operating income relative to its total assets.
The steady rise in operating ROA indicates that Planet Fitness Inc has been effectively utilizing its assets to generate operating profits. The company's management may have been successful in implementing strategies to optimize asset utilization and streamline operations during this period.
Investors and stakeholders may view this upward trajectory in operating ROA as a positive indicator of the company's operational performance and potential for generating returns on its assets. However, continuous monitoring of this ratio is necessary to ensure sustained operational efficiency and profitability for Planet Fitness Inc.