Polaris Industries Inc (PII)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,175,400 | 8,934,400 | 8,589,000 | 8,198,200 | 7,027,900 |
| Total assets | US$ in thousands | 5,525,200 | 5,516,300 | 5,217,900 | 5,047,800 | 4,632,700 |
| Total asset turnover | 1.30 | 1.62 | 1.65 | 1.62 | 1.52 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $7,175,400K ÷ $5,525,200K
= 1.30
Total asset turnover is a key financial ratio that indicates how efficiently a company is utilizing its assets to generate revenue. In the case of Polaris Industries Inc, the total asset turnover has been fluctuating over the years.
As of December 31, 2020, the total asset turnover was 1.52, indicating that for every dollar of assets the company had, it generated $1.52 in revenue. This ratio increased to 1.62 by December 31, 2021, suggesting improved efficiency in asset utilization.
By December 31, 2022, the total asset turnover further increased to 1.65, indicating that the company was utilizing its assets more efficiently to generate revenue. However, by December 31, 2023, the total asset turnover decreased slightly to 1.62, although it remained relatively high compared to previous years.
The trend changed significantly by December 31, 2024, when the total asset turnover dropped to 1.30. This decrease may indicate a decrease in efficiency in utilizing assets to generate revenue.
Overall, Polaris Industries Inc's total asset turnover has shown fluctuations, with some years indicating improved efficiency in asset utilization and others suggesting potential challenges in generating revenue from its assets. It is important for the company to consistently monitor and improve its asset turnover to ensure optimal performance and profitability.