Polaris Industries Inc (PII)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,175,400 | 7,709,200 | 8,235,700 | 8,491,100 | 8,934,400 | 9,049,300 | 9,141,000 | 8,987,200 | 8,764,300 | 8,530,600 | 8,149,500 | 8,203,900 | 8,198,200 | 8,184,100 | 8,179,200 | 7,573,800 | 7,027,900 | 6,607,470 | 6,424,520 | 6,692,040 |
| Total current assets | US$ in thousands | 2,632,400 | 2,728,200 | 2,800,100 | 2,732,600 | 2,691,700 | 3,043,300 | 2,888,200 | 2,787,300 | 2,767,600 | 2,834,800 | 2,865,800 | 2,655,100 | 2,559,000 | 2,447,700 | 2,133,400 | 2,133,100 | 2,207,500 | 2,379,700 | 1,883,700 | 1,985,200 |
| Total current liabilities | US$ in thousands | 2,293,200 | 2,252,700 | 1,975,000 | 1,860,600 | 1,933,800 | 2,438,300 | 2,414,900 | 2,298,400 | 2,328,600 | 2,212,700 | 2,340,200 | 2,250,900 | 2,230,100 | 1,844,800 | 1,822,100 | 1,856,900 | 1,889,400 | 2,239,000 | 1,907,600 | 1,513,000 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,175,400K ÷ ($2,632,400K – $2,293,200K)
= 21.15
Polaris Industries Inc's working capital turnover ratio has shown fluctuations over the past few years. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively managing its working capital.
Based on the provided data, the working capital turnover ratio for Polaris Industries Inc ranged from a high of 46.96 at the end of September 2020 to a low of 9.74 at the end of March 2024.
The company experienced a significant decline in the working capital turnover ratio from September 2020 to March 2024, indicating a potential inefficiency in working capital management during this period. This could be a cause for concern as it suggests that Polaris Industries Inc may not be effectively utilizing its working capital to support its revenue generation activities.
It is important for the company to closely monitor its working capital turnover ratio and implement strategies to improve efficiency in managing its working capital. By doing so, Polaris Industries Inc can enhance its overall financial performance and profitability in the long run.