The economics of gyms are pretty awful. VVA's balance sheet bares that out and goes a long way to explaining the focus on utilisation. If you've got $260m of leased gym equipment and debt, backed by $10m-$20m in equity ex-goodwill then you need those gyms full. If you can catch the updraft of rising utilisation then you could do well. But it's really only a trade because sooner or later the economics of gyms catches up to you. That leverage in something like a discount gym chain would keep me up at night.
The economics of gyms are pretty awful. VVA's balance sheet...
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$1.40 |
Change
0.000(0.00%) |
Mkt cap ! $141.3M | |||
| Open | High | Low | Value | Volume |
| $1.40 | $1.40 | $1.40 | $1.509K | 1.078K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 4000 | $1.38 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.40 | 14072 | 3 |
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| VVA (ASX) Chart |