Planet Fitness Inc (PLNT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.70 | 0.71 | 0.73 | 0.65 | 0.66 | 0.67 | 0.69 | 0.68 | 0.69 | 0.70 | 0.69 | 0.66 | 0.86 | 0.89 | 0.92 | 0.94 | 0.95 | 0.97 | 0.98 | 0.94 |
| Debt-to-capital ratio | 1.11 | 1.14 | 1.17 | 1.05 | 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 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, we can analyze Planet Fitness Inc's solvency ratios as follows:
1. Debt-to-Assets Ratio:
- The debt-to-assets ratio measures the proportion of a company's assets that are financed through debt.
- Planet Fitness Inc's debt-to-assets ratio has shown a decreasing trend from 0.94 as of March 31, 2020, to 0.70 as of December 31, 2024.
- The decreasing trend in the debt-to-assets ratio indicates that the company has been reducing its reliance on debt to finance its assets over the years.
2. Debt-to-Capital Ratio:
- The debt-to-capital ratio indicates the percentage of a company's capital structure that is financed through debt.
- Planet Fitness Inc's debt-to-capital ratio also exhibits a decreasing trend, declining from 1.65 as of March 31, 2020, to 1.11 as of December 31, 2024.
- The declining trend in the debt-to-capital ratio suggests that the company has been reducing its debt levels in relation to its total capital structure.
3. Debt-to-Equity Ratio and Financial Leverage Ratio:
- The data provided does not include values for the debt-to-equity ratio and financial leverage ratio for Planet Fitness Inc across the reporting periods.
Overall, the analysis of Planet Fitness Inc's solvency ratios indicates that the company has been effectively managing its debt levels and improving its solvency position by decreasing its reliance on debt financing over the years. This trend suggests a positive outlook in terms of the company's financial health and ability to meet its financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates a better ability to meet interest obligations. Analyzing the interest coverage ratio of Planet Fitness Inc over the period from March 31, 2020, to December 31, 2024, we observe a fluctuating trend.
The interest coverage ratio decreased from 3.05 on March 31, 2020, to a low of 0.77 on March 31, 2021, indicating a potential weakening ability to cover interest expenses with operating income. Subsequently, the ratio showed some improvement, reaching 6.69 on June 30, 2024, and significantly increasing to 61.25 on December 31, 2024.
While the ratio fluctuated throughout the period, it is essential to note the sharp increase in the interest coverage ratio towards the latter part of the period, indicating a substantial improvement in Planet Fitness Inc's ability to meet its interest obligations. Investors and creditors may view this positively as it suggests a stronger financial position and reduced risk of default due to interest payment difficulties. Further monitoring of the trend in future periods will be important to assess the company's ongoing ability to service its debt.