Planet Fitness Inc (PLNT)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,148,030 | 1,962,870 | 1,978,130 | 1,740,270 | 1,751,430 |
| Total stockholders’ equity | US$ in thousands | -215,380 | -115,649 | -199,012 | -645,355 | -705,869 |
| Debt-to-capital ratio | 1.11 | 1.06 | 1.11 | 1.59 | 1.68 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,148,030K ÷ ($2,148,030K + $-215,380K)
= 1.11
The debt-to-capital ratio of Planet Fitness Inc has shown a declining trend over the past five years, decreasing from 1.68 in 2020 to 1.11 in both 2022 and 2024, with the lowest ratio recorded in 2023 at 1.06. This suggests that the company has been able to reduce its reliance on debt in relation to its total capital over the period. A decreasing debt-to-capital ratio may indicate improved financial stability and lower financial risk for the company. However, it is essential to further evaluate the reasons behind this trend, such as changes in the company's capital structure, debt repayment strategies, or overall financial health.