Polaris Industries Inc (PII)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 27.93 | 17.21 | 28.88 | 27.21 | 23.93 | 14.83 | 19.86 | 23.83 | 24.67 | 33.45 | 36.84 | 31.63 | 26.67 | 26.54 | 30.42 | 31.04 | 30.16 | 28.48 | 28.04 | 26.80 | |
| DSO | days | 13.07 | 21.21 | 12.64 | 13.42 | 15.25 | 24.61 | 18.38 | 15.31 | 14.80 | 10.91 | 9.91 | 11.54 | 13.69 | 13.75 | 12.00 | 11.76 | 12.10 | 12.82 | 13.02 | 13.62 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 27.93
= 13.07
To analyze Polaris Inc's Days of Sales Outstanding (DSO) over the past eight quarters, we observe a fluctuating trend. DSO measures the average number of days it takes for the company to collect payment after making a sale.
In Q4 2023, the DSO decreased significantly to 12.89 days compared to the previous quarter at 21.35 days. This suggests an improvement in the company's efficiency in collecting receivables. However, the DSO in Q4 2023 was higher than Q2 2023 at 12.74 days, which indicates a slight deterioration in this aspect.
Looking back further, the DSO figures show variability. Q1 and Q3 of 2022 had relatively low DSO at 11.27 days and 13.48 days, respectively, while Q4 2022 was higher at 15.44 days.
Overall, while there have been fluctuations in Polaris Inc's DSO, the company should aim to maintain a consistent and low DSO to ensure efficient cash flow management and timely collection of receivables. Further analysis of underlying factors driving the changes in DSO may provide insights for strategic decision-making.