Polaris Industries Inc (PII)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 21.15 | 16.21 | 9.98 | 9.74 | 11.79 | 14.96 | 19.31 | 18.38 | 19.96 | 13.71 | 15.51 | 20.30 | 24.93 | 13.57 | 26.27 | 27.42 | 22.09 | 46.96 | — | 14.17 |
Polaris Industries Inc's inventory turnover ratio has shown a slight fluctuation over the years, ranging from 3.09 to 4.81. A general decreasing trend in the inventory turnover ratio can indicate potential inefficiencies in managing inventory levels or challenges in selling inventory. However, the ratio has remained relatively stable around the 3.0 to 4.0 range, suggesting that Polaris is efficiently managing its inventory turnover.
The receivables turnover ratio is not available for analysis as the data is missing for all periods provided. This means that it is not possible to evaluate how quickly Polaris is collecting payments from its customers based on the information given.
Similarly, the payables turnover ratio data is also unavailable for analysis, which prevents an assessment of how efficiently Polaris is managing its payments to suppliers during the periods in question.
The working capital turnover ratio has shown fluctuations over the years, varying from 9.74 to 46.96. A higher working capital turnover ratio indicates that Polaris is utilizing its working capital more efficiently to generate revenue. The decreasing trend in the ratio over time may signal potential challenges in driving sales with the available working capital. However, the ratio has shown some variability, which may indicate different operational strategies being implemented by Polaris during different periods.
Overall, while Polaris Industries Inc has shown some stability in its inventory turnover and working capital turnover ratios, the lack of data for receivables turnover and payables turnover ratios limits the comprehensive analysis of the company's overall activity ratios. Further information on these ratios would provide a more complete picture of Polaris's operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 110.59 | 118.12 | 111.49 | 106.33 | 94.56 | 107.08 | 105.03 | 102.83 | 102.36 | 105.81 | 109.36 | 108.12 | 95.97 | 105.49 | 91.20 | 86.16 | 80.83 | 88.16 | 75.85 | 88.32 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The analysis of Polaris Industries Inc activity ratios reveals fluctuations in the days of inventory on hand over the years. The company's inventory management efficiency improved from June 2020 to December 2021, as reflected in a decrease in the days of inventory on hand. However, from March 2022 onwards, there was an increase in this ratio, indicating a potential slowdown in the company's ability to turn inventory into sales.
The days of sales outstanding (DSO) and number of days of payables data were not provided, suggesting that the company may not have significant amounts of accounts receivables or payables that impact its cash conversion cycle. Without this information, it is challenging to assess the efficiency of the company in collecting receivables and managing payables.
Overall, based on the days of inventory on hand ratio, Polaris Industries Inc should focus on optimizing its inventory management to enhance operational efficiency and maintain a healthy cash flow cycle.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 7.00 | 7.38 | 8.49 | 7.76 | 8.91 | 8.67 | 8.39 | 7.19 | 7.46 | 7.99 | 8.62 | 7.91 | 7.64 | 7.35 | 7.55 |
| Total asset turnover | 1.30 | 1.37 | 1.44 | 1.53 | 1.62 | 1.58 | 1.67 | 1.70 | 1.68 | 1.67 | 1.56 | 1.60 | 1.62 | 1.68 | 1.81 | 1.68 | 1.52 | 1.38 | 1.49 | 1.40 |
Polaris Industries Inc's Fixed Asset Turnover ratio showed a fluctuating trend from March 2020 to June 2023, indicating varying levels of efficiency in utilizing fixed assets to generate sales. The ratio ranged from a high of 8.91 to a low of 7.00 during this period. The ratio peaked in December 2022 at 8.49, suggesting improved efficiency in generating sales from fixed assets. However, the ratio dropped to 7.38 in June 2023, indicating a temporary decrease in asset turnover efficiency.
On the other hand, the Total Asset Turnover ratio exhibited a relatively stable trend from March 2020 to June 2024, fluctuating between 1.30 and 1.81 during this period. The ratio peaked in June 2021 at 1.81, reflecting a high level of effectiveness in utilizing total assets to generate sales. It then gradually declined, reaching a low of 1.30 in December 2024.
Overall, the trends in both ratios suggest that Polaris Industries Inc experienced fluctuations in its efficiency in generating sales from both fixed and total assets during the period analyzed. Additional analysis and comparison with industry peers may provide further insights into the company's asset utilization efficiency.