Polaris Industries Inc (PII)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,809,400 | 8,517,300 | 8,117,900 | 6,963,800 | 6,704,930 |
| Receivables | US$ in thousands | 315,400 | 363,300 | 244,500 | 261,100 | 222,877 |
| Receivables turnover | 27.93 | 23.44 | 33.20 | 26.67 | 30.08 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,809,400K ÷ $315,400K
= 27.93
The receivables turnover for Polaris Inc has fluctuated over the past five years, ranging from a low of 23.64 in 2022 to a high of 33.53 in 2021. The receivables turnover ratio measures how efficiently the company is able to collect outstanding receivables during a specific period. A higher turnover ratio indicates that the company is collecting receivables more quickly.
In 2023, the receivables turnover increased to 28.33 from the previous year, suggesting an improvement in the company's ability to efficiently collect outstanding receivables. This may indicate effective credit management practices or increased customer demand leading to faster payments.
It's important to note that while a high receivables turnover ratio could indicate efficient collection practices, excessively high ratios may also suggest overly aggressive credit policies that could potentially impact sales. Conversely, a low receivables turnover ratio may indicate issues with collections or a potential increase in bad debts.
Overall, the trend of Polaris Inc's receivables turnover ratio indicates fluctuations in its ability to manage receivables efficiently over the past five years.