Planet Fitness Inc (PLNT)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 172,042 | 138,313 | 99,402 | 42,774 | -14,991 |
| Total assets | US$ in thousands | 3,069,710 | 2,969,690 | 2,854,590 | 2,015,980 | 1,849,740 |
| ROA | 5.60% | 4.66% | 3.48% | 2.12% | -0.81% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $172,042K ÷ $3,069,710K
= 5.60%
Based on the data provided, the return on assets (ROA) of Planet Fitness Inc has shown a positive trend over the years. The ROA increased from -0.81% as of December 31, 2020, to 5.60% as of December 31, 2024. This indicates that the company has been generating increasing returns from its assets over the years.
The improvement in ROA suggests that Planet Fitness Inc has been able to utilize its assets more efficiently to generate profits. A rising ROA generally reflects effective management of assets to generate earnings.
Overall, the upward trend in ROA demonstrates that Planet Fitness Inc is becoming more profitable relative to its asset base, which can be seen as a positive indicator of the company's financial health and operational efficiency.