Planet Fitness Inc (PLNT)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 1.06 | 1.09 | 1.11 | 1.08 | 1.11 | 1.11 | 1.10 | 1.12 | 1.59 | 1.61 | 1.64 | 1.66 | 1.68 | 1.70 | 1.69 | 1.65 | 1.72 | 1.61 | 1.36 | 1.43 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,962,870K ÷ ($1,962,870K + $-115,649K)
= 1.06
The debt-to-capital ratio of Planet Fitness Inc has shown relatively consistent levels in recent quarters, ranging from 1.06 to 1.11. This ratio indicates that the company's debt represents approximately 106% to 111% of its total capital over the analyzed period. A ratio above 1 suggests that the company has more debt than equity in its capital structure. It appears that Planet Fitness Inc relies more on debt financing compared to equity, which may pose higher financial risk due to increased interest obligations. Monitoring this ratio over time can provide insights into the company's leverage position and its ability to manage debt effectively.