Planet Fitness Inc (PLNT)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 5,362 | 25,789 | 46,143 | 86,410 | 86,576 | 86,872 | 87,085 | 87,596 | 88,628 | 87,019 | 85,452 | 83,598 | 81,211 | 81,442 | 81,778 | 82,120 | 82,116 | 78,053 | 72,174 | 66,343 |
| Interest coverage | 61.25 | 12.23 | 6.69 | 3.47 | 3.27 | 3.19 | 3.07 | 2.76 | 2.69 | 2.13 | 1.93 | 1.81 | 1.60 | 1.84 | 1.49 | 0.77 | 0.83 | 1.12 | 1.69 | 3.05 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $328,442K ÷ $5,362K
= 61.25
Based on the data provided, the interest coverage ratio for Planet Fitness Inc has shown fluctuations over the years. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.
In March 2020, the interest coverage ratio was 3.05, indicating that the company generated 3.05 times the amount of operating income needed to cover its interest expenses. However, the ratio decreased to 0.83 by December 2020, suggesting a decline in the company's ability to cover its interest costs.
Subsequently, the interest coverage ratio improved to 3.47 by March 2024, indicating a stronger ability to meet interest payments. The ratio significantly increased to 61.25 by December 2024, which may indicate either a significant increase in operating income or a decrease in interest expenses.
Overall, the trend in Planet Fitness Inc's interest coverage ratio shows some volatility but with an overall improvement towards the later years, suggesting a better ability to cover interest expenses with operating income. Investors and creditors may find this information useful in assessing the company's financial health and risk profile.