Polaris Industries Inc (PII)
Payables 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 |
| Payables | US$ in thousands | 713,100 | 847,600 | 776,000 | 782,200 | 450,200 |
| Payables turnover | 11.16 | 8.83 | 9.33 | 8.49 | 13.61 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,958,600K ÷ $713,100K
= 11.16
Polaris Inc's payables turnover ratio has fluctuated over the past five years, indicating the efficiency with which the company is managing its accounts payable. The trend shows an improvement from 2019 to 2023, with a notable increase in the ratio. A higher payables turnover ratio suggests that Polaris Inc is paying its suppliers more frequently within a given period, which may signal better management of its working capital and potentially stronger supplier relationships. This improvement may also indicate effective inventory management and cash flow optimization. Overall, the upward trend in Polaris Inc's payables turnover ratio reflects positively on the company's operational efficiency in managing its payables.