Polaris Industries Inc (PII)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 287,800 | 367,800 | 324,500 | 509,200 | 634,700 |
| Short-term investments | US$ in thousands | — | 900 | 5,900 | — | 59,000 |
| Total current liabilities | US$ in thousands | 2,293,200 | 1,933,800 | 2,328,600 | 2,230,100 | 1,889,400 |
| Cash ratio | 0.13 | 0.19 | 0.14 | 0.23 | 0.37 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($287,800K
+ $—K)
÷ $2,293,200K
= 0.13
The cash ratio of Polaris Industries Inc has exhibited a declining trend over the past five years, decreasing from 0.37 on December 31, 2020, to 0.13 on December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has weakened over this period. The decreasing trend may raise concerns about the company's liquidity position and its ability to meet its immediate financial obligations using available cash resources. Further analysis and monitoring of the company's cash management and liquidity position may be warranted to address any underlying issues and ensure financial stability.