Planet Fitness Inc (PLNT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 272,865 | 265,904 | 255,487 | 233,577 | 230,078 | 194,873 | 177,486 | 162,646 | 143,395 | 146,377 | 117,872 | 54,898 | 59,759 | 89,158 | 126,177 | 214,165 | 233,083 | 224,254 | 214,766 | 198,311 |
| Total assets | US$ in thousands | 2,969,690 | 2,944,850 | 2,848,240 | 2,905,560 | 2,854,590 | 2,846,260 | 2,884,090 | 2,992,400 | 2,015,980 | 1,949,700 | 1,899,600 | 1,864,980 | 1,849,740 | 1,801,550 | 1,800,040 | 1,875,640 | 1,717,190 | 1,420,230 | 1,523,470 | 1,509,590 |
| Operating ROA | 9.19% | 9.03% | 8.97% | 8.04% | 8.06% | 6.85% | 6.15% | 5.44% | 7.11% | 7.51% | 6.21% | 2.94% | 3.23% | 4.95% | 7.01% | 11.42% | 13.57% | 15.79% | 14.10% | 13.14% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $272,865K ÷ $2,969,690K
= 9.19%
Operating return on assets (ROA) is a key performance indicator that evaluates a company's ability to generate profits from its operational assets. Planet Fitness Inc's operating ROA has shown a positive trend over the past eight quarters, indicating an improvement in the company's operational efficiency and profitability.
In Q4 2023, the operating ROA was 9.54%, slightly down from the previous quarter but still above the 9% threshold. This suggests that for every dollar of operational assets, Planet Fitness generated a profit of $0.0954 in the most recent quarter.
The consistent growth in operating ROA from Q1 2022 to Q4 2023, increasing from 5.91% to 9.54%, highlights the company's ability to effectively utilize its operational assets to drive profitability. This improvement signifies enhanced operational performance and efficiency in generating returns for shareholders.
Overall, the upward trend in Planet Fitness Inc's operating ROA over the last eight quarters reflects positively on the company's operational management and indicates a potential for continued growth and profitability in the future.