Polaris Industries Inc (PII)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,708,600 | 13,949,000 | 6,629,500 | 6,255,500 | 5,317,700 |
| Inventory | US$ in thousands | 1,741,500 | 1,810,500 | 1,896,100 | 1,644,800 | 1,177,600 |
| Inventory turnover | 3.28 | 7.70 | 3.50 | 3.80 | 4.52 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,708,600K ÷ $1,741,500K
= 3.28
Polaris Industries Inc's inventory turnover ratio has displayed fluctuations over the past five years. In December 2020, the ratio stood at 4.52, indicating that the company turned over its inventory approximately 4.52 times during that year.
However, in the subsequent years, there was a decline in inventory turnover, with the ratio decreasing to 3.80 in December 2021 and further to 3.50 in December 2022. This downward trend suggests that Polaris Industries Inc took longer to sell its inventory in those years.
In December 2023, there was a significant improvement in the inventory turnover ratio, spiking to 7.70. This sharp increase indicates that the company effectively managed its inventory, promptly selling and replenishing stock during that period.
Nevertheless, in December 2024, the inventory turnover ratio dropped again to 3.28, reflecting a decrease in the efficiency of inventory management compared to the previous year.
Overall, the inventory turnover ratios reveal fluctuations in how effectively Polaris Industries Inc managed its inventory during the five-year period, with notable variations in turnover efficiency from year to year.