Polaris Industries Inc (PII)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.30 | 3.09 | 3.27 | 3.43 | 3.86 | 3.41 | 3.48 | 3.55 | 3.57 | 3.45 | 3.34 | 3.38 | 3.80 | 3.46 | 4.00 | 4.24 | 4.52 | 4.14 | 4.81 | 4.13 | |
| DOH | days | 110.59 | 118.12 | 111.49 | 106.33 | 94.56 | 107.08 | 105.03 | 102.83 | 102.36 | 105.81 | 109.36 | 108.12 | 95.97 | 105.49 | 91.20 | 86.16 | 80.83 | 88.16 | 75.85 | 88.32 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.30
= 110.59
The Days of Inventory on Hand (DOH) ratio for Polaris Industries Inc has shown some fluctuations over the past few years. From March 31, 2020 to June 30, 2020, there was a decrease in DOH from 88.32 days to 75.85 days, indicating that the company was able to manage its inventory more efficiently during that period.
However, from June 30, 2020 to September 30, 2020, the DOH increased to 88.16 days, suggesting that the company may have experienced challenges in managing its inventory levels effectively. Subsequently, there was a slight improvement as the DOH decreased to 80.83 days by December 31, 2020.
The trend continued with fluctuations in the DOH ratio over the following quarters, with peaks in September 30, 2021 (105.49 days), June 30, 2022 (109.36 days), and September 30, 2024 (118.12 days). These peaks could indicate potential inventory management issues, leading to excess inventory levels that may tie up working capital and increase storage costs.
Conversely, there were also periods of improvement in inventory management, such as in June 30, 2023 (105.03 days) and December 31, 2023 (94.56 days), where the DOH ratio decreased. It is essential for Polaris Industries Inc to monitor its inventory levels closely to strike a balance between meeting customer demand while minimizing carrying costs and obsolescence risks.
Overall, the company should focus on optimizing its inventory turnover rate to ensure efficient operations and improved cash flow management.