Planet Fitness Inc (PLNT)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 328,442 | 315,498 | 308,559 | 299,597 | 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 |
| Long-term debt | US$ in thousands | 2,148,030 | 2,152,280 | 2,156,550 | 1,959,030 | 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 |
| Total stockholders’ equity | US$ in thousands | -215,380 | -266,132 | -317,664 | -96,415 | -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 |
| Return on total capital | 16.99% | 16.73% | 16.78% | 16.08% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $328,442K ÷ ($2,148,030K + $-215,380K)
= 16.99%
Planet Fitness Inc's return on total capital has displayed fluctuations over the past few years. The trend shows a declining pattern from March 2020 to March 2021, dropping from 18.97% to 6.02%. However, there was a notable improvement in performance starting in June 2021, with the return on total capital climbing to 15.11% by June 2023.
The company's return on total capital continued to rise steadily, reaching a peak of 16.99% by December 2024. This positive trajectory suggests that Planet Fitness Inc has been effectively utilizing its total capital to generate returns for its stakeholders. It is crucial for investors and management to monitor this metric to assess the company's efficiency in generating profits relative to its total capital employed.