Planet Fitness Inc (PLNT)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 283,402 | 276,957 | 267,136 | 241,610 | 238,545 | 185,091 | 164,868 | 151,271 | 129,644 | 149,910 | 122,182 | 63,260 | 67,812 | 87,808 | 122,161 | 202,607 | 216,311 | 204,270 | 195,947 | 179,312 |
| Long-term debt | US$ in thousands | 1,962,870 | 1,966,680 | 1,970,490 | 1,974,300 | 1,978,130 | 1,982,160 | 1,985,730 | 1,989,530 | 1,740,270 | 1,743,050 | 1,745,830 | 1,748,620 | 1,751,430 | 1,754,190 | 1,756,950 | 1,759,730 | 1,687,500 | 1,155,050 | 1,156,790 | 1,158,480 |
| Total stockholders’ equity | US$ in thousands | -115,649 | -157,078 | -201,969 | -151,108 | -199,012 | -203,651 | -185,372 | -212,699 | -645,355 | -660,553 | -681,005 | -697,675 | -705,869 | -719,626 | -718,287 | -691,783 | -706,455 | -438,594 | -309,115 | -345,980 |
| Return on total capital | 15.34% | 15.30% | 15.11% | 13.25% | 13.41% | 10.41% | 9.16% | 8.51% | 11.84% | 13.85% | 11.47% | 6.02% | 6.49% | 8.49% | 11.76% | 18.97% | 22.05% | 28.51% | 23.12% | 22.07% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $283,402K ÷ ($1,962,870K + $-115,649K)
= 15.34%
Planet Fitness Inc's return on total capital has been showing a steady improvement over the past eight quarters, reflecting positively on the company's performance in utilizing its total capital effectively to generate profits. The return on total capital has increased from 9.43% in Q1 2022 to 15.06% in Q4 2023, indicating a consistent upward trend.
This improvement suggests that Planet Fitness Inc has been able to efficiently allocate its total capital towards productive investments and operations, resulting in higher returns for its investors. The company's ability to maintain a return on total capital above 10% for several quarters indicates a strong financial position and operational efficiency.
Overall, the increasing trend in return on total capital demonstrates Planet Fitness Inc's effectiveness in generating profits relative to the total amount of capital invested in the business, indicating a positive outlook for the company's financial performance.