GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Planet Fitness Inc (NYSE:PLNT) » Definitions » ROE %

PLNT (Planet Fitness) ROE % : Negative Equity% (As of Jun. 2024)


View and export this data going back to 2015. Start your Free Trial

What is Planet Fitness ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Planet Fitness's annualized net income for the quarter that ended in Jun. 2024 was $195 Mil. Planet Fitness's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was $-207 Mil. Therefore, Planet Fitness's annualized ROE % for the quarter that ended in Jun. 2024 was Negative Equity%.

The historical rank and industry rank for Planet Fitness's ROE % or its related term are showing as below:

PLNT' s ROE % Range Over the Past 10 Years
Min: 15.96   Med: Negative Equity   Max: Negative Equity
Current: Negative Equity

During the past 11 years, Planet Fitness's highest ROE % was Negative Equity%. The lowest was 15.96%. And the median was Negative Equity%.

PLNT's ROE % is ranked better than
99.87% of 786 companies
in the Travel & Leisure industry
Industry Median: 5.615 vs PLNT: Negative Equity

Planet Fitness ROE % Historical Data

The historical data trend for Planet Fitness's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Planet Fitness ROE % Chart

Planet Fitness Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Equity - Negative Equity Negative Equity Negative Equity

Planet Fitness Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Negative Equity Negative Equity Negative Equity Negative Equity Negative Equity

Competitive Comparison of Planet Fitness's ROE %

For the Leisure subindustry, Planet Fitness's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Planet Fitness's ROE % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Planet Fitness's ROE % distribution charts can be found below:

* The bar in red indicates where Planet Fitness's ROE % falls into.



Planet Fitness ROE % Calculation

Planet Fitness's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=138.313/( (-199.012+-115.649)/ 2 )
=138.313/-157.3305
=Negative Equity %

Planet Fitness's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Mar. 2024 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=194.56/( (-96.415+-317.664)/ 2 )
=194.56/-207.0395
=Negative Equity %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2024) net income data. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.


Planet Fitness  (NYSE:PLNT) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=194.56/-207.0395
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(194.56 / 1203.764)*(1203.764 / 2983.409)*(2983.409 / -207.0395)
=Net Margin %*Asset Turnover*Equity Multiplier
=16.16 %*0.4035*N/A
=ROA %*Equity Multiplier
=6.52 %*N/A
=Negative Equity %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=194.56/-207.0395
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (194.56 / 278.02) * (278.02 / 349.516) * (349.516 / 1203.764) * (1203.764 / 2983.409) * (2983.409 / -207.0395)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6998 * 0.7954 * 29.04 % * 0.4035 * N/A
=Negative Equity %

Note: The net income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Planet Fitness ROE % Related Terms

Thank you for viewing the detailed overview of Planet Fitness's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Planet Fitness Business Description

Traded in Other Exchanges
Address
4 Liberty Lane West, Hampton, NH, USA, 03842
Planet Fitness Inc is a franchisor and operator of fitness centers in the United States. The company's reportable segments are Franchise, Corporate-owned stores, and Equipment. Franchise segment includes operations related to its franchising business in the United States, Puerto Rico, Canada, Panama, Mexico and Australia, Corporate-owned stores segment includes operations with respect to all corporate-owned stores throughout the United States and Canada, and The Equipment segment includes the sale of equipment to franchisee-owned stores in the U.S. The firm generates a majority of its revenue from the Corporate-owned stores segment.
Executives
William Bode officer: Chief Operations Officer 4 LIBERTY LANE WEST, HAMPTON NH 03842
Brian O'donnell officer: VP, Chief Accounting Officer 4 LIBERTY LANE WEST, HAMPTON NH 03842
Craig R Benson director
Christopher Rondeau director, officer: CEO 4 LIBERTY LANE WEST, C/O PLANET FITNESS INC, HAMPTON NH 03842
Jennifer Simmons officer: Div President, Corp Stores 4 LIBERTY LANE WEST, HAMPTON NH 03842
Edward Hymes officer: President, COO 4 LIBERTY LANE WEST, HAMPTON NH 03842
Shane Mcguiness officer: President, Corporate Clubs 4 LIBERTY LANE WEST, HAMPTON NH 03842
Jeremy Tucker officer: Chief Marketing Officer 4 LIBERTY LANE WEST, HAMPTON NH 03842
Dorvin D Lively officer: CFO
Fitzgerald Thomas J Iii officer: Chief Financial Officer 111 NORTH CANAL STREET, SUITE 850, CHICAGO IL 60606
Bernard Acoca director C/O EL POLLO LOCO HOLDINGS, INC., 3535 HARBOR BLVD., SUITE 100, COSTA MESA CA 92626
Christopher Tanco director 2001 COTTONWOOD VALLEY CIRCLE SOUTH, IRVING TX 75038
Craig Jeffrey Miller officer: Chief Digital & Information Of 5008 HARTRIDGE WAY, GREENSBORO NC 27407
Enshalla Anderson director 4 LIBERTY LANE WEST, HAMPTON NH 03842
David P Berg director 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423