Polaris Industries Inc (PII)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,809,400 | 8,932,200 | 9,036,300 | 8,899,000 | 8,692,600 | 6,350,200 | 5,978,400 | 6,037,000 | 6,031,600 | 8,138,400 | 8,127,000 | 7,514,400 | 6,963,800 | 6,556,070 | 6,370,680 | 6,635,480 | 6,721,750 | 6,613,000 | 6,492,680 | 6,227,300 |
| Receivables | US$ in thousands | 315,400 | 519,000 | 312,900 | 327,100 | 363,300 | 428,200 | 301,000 | 253,300 | 244,500 | 243,300 | 220,600 | 237,600 | 261,100 | 247,000 | 209,400 | 213,800 | 222,877 | 232,189 | 231,538 | 232,362 |
| Receivables turnover | 27.93 | 17.21 | 28.88 | 27.21 | 23.93 | 14.83 | 19.86 | 23.83 | 24.67 | 33.45 | 36.84 | 31.63 | 26.67 | 26.54 | 30.42 | 31.04 | 30.16 | 28.48 | 28.04 | 26.80 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $8,809,400K ÷ $315,400K
= 27.93
The receivables turnover ratio measures how effectively Polaris Inc is managing its accounts receivable by showing how many times during a period the company collects its average accounts receivable balance.
Based on the data provided, we can see fluctuations in Polaris Inc's receivables turnover over the past eight quarters. In Q4 2023, the company's receivables turnover was 28.33, indicating that Polaris collected its outstanding accounts receivable approximately 28.33 times during that quarter. This represents an improvement compared to the previous quarters, especially when compared to the lowest turnover ratio of 17.10 in Q3 2023.
The increasing trends in receivables turnover from Q3 2023 to Q4 2023, and also from Q1 2023 to Q4 2023, suggest that Polaris is becoming more efficient in collecting its accounts receivable. A higher turnover ratio typically indicates that the company is managing its credit policies well, collecting payments from customers promptly, and converting receivables into cash effectively.
On the other hand, the fluctuating nature of the receivables turnover ratio in the past quarters could also indicate potential issues such as changes in customer payment behaviors, credit policy adjustments, or seasonal variations in sales. It is essential for Polaris Inc to sustain its improved receivables turnover ratio to ensure healthy cash flow and liquidity management in the long term.