Planet Fitness(Plnt) Financials: Inventory Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - inventory turnover
This chart shows the historical trend of inventory turnover for PLNT compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Inventory Turnover
Definition: Inventory turnover measures how quickly the company sells and replaces its inventory. A higher turnover means products are selling fast and inventory isn’t sitting idle. Slow turnover may suggest weak sales, poor demand forecasting, or obsolete inventory piling up — all of which can tie up cash unnecessarily.
Interpretation:
• In '2021', PLNT's inventory turnover was 234.76, reflecting efficiency in managing inventory stock. Industry average for Hotels/Resorts in '2021' stood at 2.00.
• In '2022', PLNT's inventory turnover was 144.13, reflecting efficiency in managing inventory stock. The decline from '2021' may indicate some operational or financial challenges. Industry average for Hotels/Resorts in '2022' stood at 1.17. Industry average declined by 0.83 from previous year.
• In '2023', PLNT's inventory turnover was 103.34, reflecting efficiency in managing inventory stock. The decline from '2022' may indicate some operational or financial challenges. Industry average for Hotels/Resorts in '2023' stood at 1.18. Industry average increased by 0.01 compared to previous year.
• In '2024', PLNT's inventory turnover was 104.71, reflecting efficiency in managing inventory stock. The increase since '2023' reflects strengthening financial performance. Industry average for Hotels/Resorts in '2024' stood at 1.10. Industry average declined by 0.08 from previous year.
Overall, PLNT's inventory turnover has been volatile but showed a downward trend over the past 4 years.
Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory
Good Range: Typically 4 to 12 depending on industry.