Planet Fitness Inc (PLNT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.98 | 0.81 | 0.76 | 0.77 |
| 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 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The solvency ratios for Planet Fitness Inc reveal the following trends based on the data provided:
1. Debt-to-assets ratio has remained relatively stable over the periods, ranging from 0.67 to 0.70. This indicates that around 67% to 70% of the company's assets are financed through debt.
2. Debt-to-capital ratio has shown minor fluctuations, with values ranging from 1.06 to 1.11. This ratio indicates the proportion of the company's capital that is financed by debt, which has been around 106% to 111%.
3. The debt-to-equity ratio and financial leverage ratio data are missing from the table, preventing a complete analysis of the company's solvency using these metrics.
Overall, the stable trends in the debt-to-assets and debt-to-capital ratios suggest that Planet Fitness Inc has maintained a consistent level of leverage over the periods analyzed. However, without the debt-to-equity ratio and financial leverage ratio data, a comprehensive assessment of the company's solvency position is limited.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 3.55 | 3.45 | 3.14 | 3.16 |
Planet Fitness Inc's interest coverage ratio has shown a consistent upward trend over the past eight quarters, indicating an improving ability to meet its interest obligations. The ratio, which measures the company's ability to pay interest expenses on its outstanding debt with its operating income, has increased from 2.13 in Q1 2022 to 4.09 in Q4 2023.
This improvement suggests that the company's operating income is becoming increasingly sufficient to cover its interest expenses, which is a positive sign of financial health. A higher interest coverage ratio indicates a lower risk of default on debt payments and is generally viewed favorably by investors and lenders.
Overall, the trend of increasing interest coverage ratios for Planet Fitness Inc reflects a strengthening financial position and provides assurance that the company can comfortably meet its interest obligations in the foreseeable future.