Polaris Industries Inc (PII)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,809,400 | 8,932,200 | 9,036,300 | 8,899,000 | 8,692,600 | 6,350,200 | 5,978,400 | 6,037,000 | 6,031,600 | 8,138,400 | 8,127,000 | 7,514,400 | 6,963,800 | 6,556,070 | 6,370,680 | 6,635,480 | 6,721,750 | 6,613,000 | 6,492,680 | 6,227,300 |
| Property, plant and equipment | US$ in thousands | 1,201,500 | 1,161,500 | 1,118,900 | 1,058,400 | 1,018,400 | 957,900 | 939,600 | 978,200 | 927,700 | 931,400 | 900,400 | 879,000 | 888,800 | 865,300 | 873,700 | 886,100 | 899,800 | 887,644 | 889,825 | 868,128 |
| Fixed asset turnover | 7.33 | 7.69 | 8.08 | 8.41 | 8.54 | 6.63 | 6.36 | 6.17 | 6.50 | 8.74 | 9.03 | 8.55 | 7.84 | 7.58 | 7.29 | 7.49 | 7.47 | 7.45 | 7.30 | 7.17 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,809,400K ÷ $1,201,500K
= 7.33
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its fixed assets. In the case of Polaris Inc, the fixed asset turnover ratio has been consistently high over the past eight quarters, ranging from 7.44 to 8.43. This indicates that Polaris is efficient in utilizing its fixed assets to generate sales revenue.
The increasing trend in the fixed asset turnover ratio over the quarters suggests that Polaris is becoming more effective in generating sales from its fixed assets. A high fixed asset turnover ratio is generally considered positive as it shows that the company is using its fixed assets efficiently to drive sales.
Overall, based on the fixed asset turnover ratio data, Polaris Inc appears to be effectively leveraging its fixed assets to generate revenue, which is a positive indicator of the company's operational efficiency and asset utilization.