Planet Fitness, Inc. (NYSE:PLNT) Financial Efficiency Analysis

Core Insights - Planet Fitness, Inc. is a prominent fitness center operator in the U.S., known for its affordable gym memberships and "Judgement Free Zone" philosophy, which fosters an inclusive environment for all fitness levels [1] Financial Performance - Planet Fitness has a Return on Invested Capital (ROIC) of 10.12% and a Weighted Average Cost of Capital (WACC) of 9.02%, resulting in a ROIC to WACC ratio of 1.12, indicating effective capital utilization [2][6] - Compared to peers, Planet Fitness's capital efficiency is moderate, with Wingstop Inc. achieving a ROIC of 21.54% and a WACC of 10.60%, leading to a higher ROIC to WACC ratio of 2.03 [3] - Match Group, Inc. has the highest ROIC to WACC ratio of 2.42, with a ROIC of 18.50% and a WACC of 7.66%, indicating superior efficiency in generating returns relative to its cost of capital [4] - Other competitors like Five Below, Inc. and Live Nation Entertainment, Inc. have lower ROIC to WACC ratios of 0.90 and 0.99, respectively, while Dave & Buster's Entertainment, Inc. shows a negative ratio of -0.04, indicating inefficiency [5]