Planet Fitness Inc (PLNT)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 196,825 | 149,917 | 48,433 | -14,304 | 155,459 |
| Revenue | US$ in thousands | 984,750 | 853,868 | 510,324 | 326,538 | 633,784 |
| Pretax margin | 19.99% | 17.56% | 9.49% | -4.38% | 24.53% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $196,825K ÷ $984,750K
= 19.99%
Planet Fitness Inc's pretax margin has shown variability over the past five years, as indicated by the levels ranging from -3.57% to 25.14%. The company's pretax margin in 2023 improved to 19.19%, compared to 17.18% in 2022 and 8.82% in 2021. This upward trend highlights a positive performance in managing operating expenses relative to its revenue. It is worth noting the significant improvement from a negative pretax margin of -3.57% in 2020 to a positive margin of 25.14% in 2019. This turnaround indicates enhanced efficiency in cost control and revenue generation. Overall, the consistent improvement in pretax margin reflects the company's ability to effectively manage costs and optimize profitability over the years.