Polaris Industries Inc (PII)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.40 | 3.78 | 3.84 | 4.01 | 4.04 | 4.01 | 3.92 | 3.89 | 4.79 | 4.02 | 4.66 | 5.22 | 5.64 | 5.26 | 6.15 | 4.97 | 5.49 | 4.74 | 5.23 | 3.94 | |
| DOH | days | 83.03 | 96.56 | 94.98 | 90.97 | 90.27 | 90.94 | 93.15 | 93.75 | 76.23 | 90.86 | 78.41 | 69.87 | 64.75 | 69.43 | 59.37 | 73.48 | 66.44 | 76.94 | 69.81 | 92.60 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.40
= 83.03
Days of Inventory on Hand (DOH) measures the average number of days it takes for a company to sell its inventory. A lower DOH indicates more efficient inventory management, as it implies quicker turnover and less tied up capital in unsold inventory.
Analyzing Polaris Inc's DOH from Q4 2022 to Q4 2023, we observe fluctuations within the range of 94.75 days to 109.36 days. The trend shows an increase in DOH in the recent quarters, peaking at 109.14 days in Q3 2023 before slightly decreasing in Q4 2023 to 94.75 days.
The rise in DOH may suggest potential issues such as slow sales, excess inventory, or changing consumer preferences affecting demand. Conversely, a lower DOH in Q4 2023 could signify improved inventory management, possibly due to better sales strategies or more effective production planning.
It is important for Polaris Inc to closely monitor its inventory levels and sales performance to strike a balance between having enough inventory to meet demand while avoiding overstock situations. Further investigation into the factors influencing these fluctuations in DOH is recommended for better operational and financial decision-making.