Polaris Industries Inc (PII)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.28 | 7.70 | 3.50 | 3.80 | 4.52 | |
| DOH | days | 111.35 | 47.37 | 104.39 | 95.97 | 80.83 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.28
= 111.35
Polaris Industries Inc's days of inventory on hand (DOH) has shown fluctuations over the analyzed period. The trend indicates an upward movement from 80.83 days as of December 31, 2020, to its peak of 111.35 days on December 31, 2024. Notably, there was a significant increase in DOH from 2020 to 2024, suggesting a potential inefficiency in managing inventory levels or slower inventory turnover.
It is crucial for Polaris Industries Inc to closely monitor and manage its inventory levels to avoid excessive holding costs and potential obsolescence. An increase in days of inventory on hand could tie up capital and affect profitability if not effectively addressed. Further analysis of the company's inventory management practices and supply chain efficiency may be warranted to improve operational performance and maintain optimal inventory levels in line with demand.