Polaris Industries Inc (PII)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	83.03	96.56	94.98	90.97	90.27	90.94	93.15	93.75	76.23	90.86	78.41	69.87	64.75	69.43	59.37	73.48	66.44	76.94	69.81	92.60
Days of sales outstanding (DSO)	days	13.07	21.21	12.64	13.42	15.25	24.61	18.38	15.31	14.80	10.91	9.91	11.54	13.69	13.75	12.00	11.76	12.10	12.82	13.02	13.62
Number of days of payables	days	32.70	41.53	42.09	40.65	40.35	40.10	47.78	48.80	39.16	47.55	46.54	45.32	43.01	45.24	31.56	33.09	26.68	35.41	25.87	35.22
Cash conversion cycle	days	63.40	76.24	65.53	63.74	65.17	75.45	63.74	60.26	51.87	54.22	41.77	36.09	35.43	37.94	39.81	52.15	51.86	54.35	56.96	70.99

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 83.03 + 13.07 – 32.70
= 63.40

The cash conversion cycle of Polaris Inc has been fluctuating over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 70.32 days, a decrease from the previous quarter. This indicates that Polaris Inc was able to manage its operating cycle more efficiently in Q4 2023. However, compared to the same quarter in the previous year, the cash conversion cycle was slightly longer.

Overall, the trend in the cash conversion cycle of Polaris Inc has shown some variability, with periods of both improvement and deterioration. It is important for the company to continue monitoring and managing its cash conversion cycle effectively, as a shorter cycle indicates better liquidity and operational efficiency.