Polaris Industries Inc (PII)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 1,627,000 | 1,743,140 | 1,570,800 | 1,638,950 |
| Total current liabilities | US$ in thousands | 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 | 1,528,000 | 1,546,120 | 1,332,380 | 1,248,110 |
| Working capital turnover | 11.62 | 14.76 | 19.09 | 18.20 | 19.80 | 10.21 | 11.37 | 14.94 | 18.34 | 13.50 | 26.11 | 27.21 | 21.89 | 46.60 | — | 14.05 | 67.90 | 33.57 | 27.23 | 15.93 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,809,400K ÷ ($2,691,700K – $1,933,800K)
= 11.62
The working capital turnover ratio for Polaris Inc has shown variations over the past eight quarters. The trend indicates a fluctuating efficiency in the company's ability to generate revenue relative to its working capital. A higher working capital turnover ratio suggests that the company is efficiently utilizing its working capital to generate sales.
In Q1 2022, the working capital turnover ratio was 20.30, indicating that for every dollar of working capital, the company generated $20.30 in revenue. This high ratio suggests strong efficiency during that period. The ratio then decreased in Q2 and Q3 2022 to 15.51 and 13.71 respectively, potentially indicating a decrease in efficiency in utilizing working capital to generate revenue.
However, from Q4 2022 to Q2 2023, there was an upward trend in the working capital turnover ratio, reaching a peak of 18.94 in Q2 2023. This suggests that the company improved its ability to generate revenue relative to its working capital, reflecting increased efficiency during these quarters.
Overall, the working capital turnover ratio for Polaris Inc has shown some fluctuations, indicating variations in the company's operational efficiency in utilizing its working capital to generate revenue over the eight quarters analyzed. Further analysis and comparison with industry averages or historical data may provide additional insights into the company's financial performance.