Planet Fitness Inc (PLNT)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 138,313 | 99,402 | 42,774 | -14,991 | 117,695 |
| Total assets | US$ in thousands | 2,969,690 | 2,854,590 | 2,015,980 | 1,849,740 | 1,717,190 |
| ROA | 4.66% | 3.48% | 2.12% | -0.81% | 6.85% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $138,313K ÷ $2,969,690K
= 4.66%
Planet Fitness Inc's return on assets (ROA) has shown fluctuations over the past five years. In 2023, the ROA reached 4.66%, a noticeable improvement from the previous year's 3.48%. This increase indicates that the company is generating more profit relative to its total assets, reflecting potentially improved efficiency in asset utilization.
Comparing the most recent ROA to 2021 and 2020, the company has made significant strides in profitability, as ROA increased from 2.12% to -0.81% to 4.66%, respectively. The negative ROA in 2020 suggests that the company temporarily experienced difficulties in generating profits relative to its asset base.
In 2019, Planet Fitness Inc achieved a robust ROA of 6.85%, indicating strong profitability relative to its total assets. However, the subsequent performance showed a decline until the recent improvement in 2023.
Overall, the upward trend in ROA from 2020 to 2023 suggests that Planet Fitness Inc has been successful in enhancing its efficiency in utilizing assets to generate profits. However, ongoing monitoring is necessary to ensure the company sustains or improves this profitability ratio in the future.