Polaris Industries Inc (PII)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,809,400 | 8,517,300 | 8,117,900 | 6,963,800 | 6,704,930 |
| Property, plant and equipment | US$ in thousands | 1,201,500 | 1,018,400 | 927,700 | 888,800 | 899,800 |
| Fixed asset turnover | 7.33 | 8.36 | 8.75 | 7.84 | 7.45 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,809,400K ÷ $1,201,500K
= 7.33
Based on the data provided, Polaris Inc's fixed asset turnover has been relatively stable over the past five years. The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets.
Polaris Inc's fixed asset turnover ratio ranged from 7.44 to 8.43 during the period from December 31, 2019, to December 31, 2023. This indicates that, on average, for each dollar invested in fixed assets, the company generated sales of approximately 7.44 to 8.43 dollars.
The consistent high fixed asset turnover ratios suggest that Polaris Inc efficiently utilizes its fixed assets to generate sales revenue. A higher fixed asset turnover ratio generally indicates better asset utilization efficiency.
Overall, the trend of Polaris Inc's fixed asset turnover ratio over the past five years shows that the company has been effective in generating sales relative to its investment in fixed assets, which is a positive sign of operational efficiency.