Planet Fitness Inc (PLNT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,969,690 | 2,854,590 | 2,015,980 | 1,849,740 | 1,717,190 |
| Total stockholders’ equity | US$ in thousands | -115,649 | -199,012 | -645,355 | -705,869 | -706,455 |
| Financial leverage ratio | — | — | — | — | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,969,690K ÷ $-115,649K
= —
To calculate the financial leverage ratio for Planet Fitness Inc, we need data on the company's total assets and total liabilities for each year from 2019 to 2023. Unfortunately, the table provided does not include this specific information, and as a result, it is not possible to calculate the financial leverage ratio for Planet Fitness Inc based on the data given.
The financial leverage ratio, also known as the debt-to-equity ratio, provides insight into the amount of debt a company uses to finance its operations relative to its equity. A high financial leverage ratio indicates that a company relies more on debt financing, which can amplify returns but also increases financial risk. Conversely, a low ratio suggests a more conservative capital structure with less reliance on debt.
To perform a thorough analysis of Planet Fitness Inc's financial leverage ratio, it would be necessary to access the company's balance sheets for the respective years and calculate the ratio using the formula:
Financial Leverage Ratio = Total Debt / Total Equity
By calculating this ratio for each year in the given period and comparing the trend over time, we could assess the company's evolving capital structure and evaluate its financial risk profile.