Planet Fitness Inc (PLNT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 272,864 | 230,078 | 143,395 | 59,760 | 233,083 |
| Total assets | US$ in thousands | 2,969,690 | 2,854,590 | 2,015,980 | 1,849,740 | 1,717,190 |
| Operating ROA | 9.19% | 8.06% | 7.11% | 3.23% | 13.57% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $272,864K ÷ $2,969,690K
= 9.19%
Planet Fitness Inc's operating return on assets (ROA) has shown a fluctuating trend over the past five years. In 2023, the operating ROA improved to 9.54%, compared to 8.24% in 2022 and 7.86% in 2021. This indicates an increasing operational efficiency and profitability relative to its asset base.
However, in 2020, the operating ROA was lower at 3.47%, which may suggest operational challenges or inefficiencies during that period. The significant increase to 13.68% in 2019 indicates a period of strong operational performance and profitability relative to its assets.
Overall, the trend in Planet Fitness Inc's operating ROA reflects variations in the company's operational efficiency and profitability over the years, highlighting the importance of effectively managing assets to generate returns for shareholders.