Polaris Industries Inc (PII)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 7,958,600 | 7,755,800 | 7,779,300 | 7,812,500 | 7,666,700 | 7,743,700 | 7,476,500 | 7,318,300 | 7,233,100 | 7,124,600 | 7,052,200 | 6,999,300 | 6,638,000 | 6,379,400 | 6,310,690 | 6,133,900 | 6,158,590 | 6,025,610 | 5,909,640 | 4,527,563 |
| Inventory | US$ in thousands | 1,810,500 | 2,051,700 | 2,024,300 | 1,947,200 | 1,896,100 | 1,929,400 | 1,908,000 | 1,879,700 | 1,510,700 | 1,773,600 | 1,514,900 | 1,339,900 | 1,177,600 | 1,213,500 | 1,026,400 | 1,234,800 | 1,121,100 | 1,270,110 | 1,130,260 | 1,148,640 |
| Inventory turnover | 4.40 | 3.78 | 3.84 | 4.01 | 4.04 | 4.01 | 3.92 | 3.89 | 4.79 | 4.02 | 4.66 | 5.22 | 5.64 | 5.26 | 6.15 | 4.97 | 5.49 | 4.74 | 5.23 | 3.94 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,958,600K ÷ $1,810,500K
= 4.40
Polaris Inc's inventory turnover has shown relatively consistent performance over the past eight quarters, ranging from 3.34 to 3.85. The inventory turnover ratio indicates how many times Polaris Inc's inventory has been sold and replaced over a specific period.
A higher inventory turnover ratio typically suggests that Polaris Inc is efficiently managing its inventory by quickly converting it into sales. However, it is essential to consider industry norms and company-specific factors when evaluating inventory turnover.
In the case of Polaris Inc, the consistent range of 3.34 to 3.85 indicates that the company is effectively managing its inventory levels. While there is room for improvement to achieve higher turnover rates, the current performance demonstrates stability in inventory management practices.
Overall, the analysis of Polaris Inc's inventory turnover ratio suggests that the company is maintaining a balanced approach to inventory management, neither holding excess inventory nor facing inventory shortages. Continuous monitoring and optimization of inventory levels will be crucial for Polaris Inc to enhance operational efficiency and profitability in the future.