Polaris Industries Inc (PII)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,958,600 | 7,486,100 | 7,241,600 | 6,638,000 | 6,127,660 |
| Inventory | US$ in thousands | 1,810,500 | 1,896,100 | 1,510,700 | 1,177,600 | 1,121,100 |
| Inventory turnover | 4.40 | 3.95 | 4.79 | 5.64 | 5.47 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,958,600K ÷ $1,810,500K
= 4.40
The inventory turnover for Polaris Inc has shown some fluctuation over the last five years. In 2023, the inventory turnover ratio was 3.85, slightly higher than the previous year but still lower than the levels seen in 2020 and 2019. This indicates that Polaris is converting its inventory into sales at a slower rate compared to previous years. A lower inventory turnover ratio could suggest that the company may be carrying excess inventory or facing challenges in managing its inventory effectively. It could also point towards potential issues in sales growth or production efficiency. Overall, Polaris Inc may need to further assess its inventory management strategies to improve inventory turnover and optimize its working capital efficiency.