Polaris Industries Inc (PII)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,747,700 | 6,176,800 | 6,549,100 | 6,703,300 | 6,988,800 | 6,993,300 | 7,034,600 | 6,911,400 | 6,761,400 | 6,655,500 | 6,368,000 | 6,345,400 | 6,255,500 | 6,136,600 | 6,062,700 | 5,676,000 | 5,317,700 | 5,023,920 | 4,939,020 | 5,102,790 |
| Inventory | US$ in thousands | 1,741,500 | 1,998,900 | 2,000,500 | 1,952,800 | 1,810,500 | 2,051,700 | 2,024,300 | 1,947,200 | 1,896,100 | 1,929,400 | 1,908,000 | 1,879,700 | 1,644,800 | 1,773,600 | 1,514,900 | 1,339,900 | 1,177,600 | 1,213,500 | 1,026,400 | 1,234,800 |
| Inventory turnover | 3.30 | 3.09 | 3.27 | 3.43 | 3.86 | 3.41 | 3.48 | 3.55 | 3.57 | 3.45 | 3.34 | 3.38 | 3.80 | 3.46 | 4.00 | 4.24 | 4.52 | 4.14 | 4.81 | 4.13 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,747,700K ÷ $1,741,500K
= 3.30
The inventory turnover ratio for Polaris Industries Inc has shown fluctuation over the given time period. The ratio indicates how many times the company's inventory is sold and replaced over a specific period, reflecting efficiency in managing inventory levels.
From March 31, 2020, to December 31, 2024, the inventory turnover ratio ranged from a low of 3.09 to a high of 4.81. Generally, a higher inventory turnover ratio is preferred as it suggests faster-moving inventory, efficient sales, and potentially lower holding costs.
It is worth noting that the inventory turnover ratio decreased from December 31, 2021, to March 31, 2024, indicating a longer time span for selling and replacing inventory. This trend may imply challenges in managing inventory levels, potential overstocking, or issues in sales performance.
Overall, fluctuations in the inventory turnover ratio of Polaris Industries Inc should be further investigated to understand the underlying reasons and identify opportunities for improving inventory management practices and operational efficiency.