Polaris Industries Inc (PII)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 287,800 | 291,300 | 322,700 | 318,800 | 367,800 | 295,300 | 340,400 | 322,900 | 324,500 | 318,900 | 314,200 | 375,400 | 509,200 | 316,500 | 288,800 | 432,400 | 634,700 | 820,600 | 544,400 | 424,400 |
| Short-term investments | US$ in thousands | — | — | 4,800 | 4,700 | 900 | 7,900 | 6,700 | 1,400 | 5,900 | 7,000 | 5,400 | 2,700 | — | 31,000 | 29,000 | 46,000 | 59,000 | 44,000 | — | — |
| 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 |
| Cash ratio | 0.13 | 0.13 | 0.17 | 0.17 | 0.19 | 0.12 | 0.14 | 0.14 | 0.14 | 0.15 | 0.14 | 0.17 | 0.23 | 0.19 | 0.17 | 0.26 | 0.37 | 0.39 | 0.29 | 0.28 |
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 fluctuated over the past several years, ranging from as low as 0.12 to as high as 0.39. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that the company has a larger proportion of its current liabilities covered by cash, which is usually seen as a positive sign of liquidity and financial health.
Polaris Industries Inc's cash ratio started at 0.28 in March 2020 and increased to 0.39 by September 2020, signaling an improvement in its liquidity position during that period. However, the ratio declined in the following quarters, reaching its lowest point at 0.12 in September 2023. This suggests that the company may have faced challenges in maintaining sufficient cash reserves to cover its short-term obligations during that time.
It's noteworthy that the cash ratio showed some recovery in the subsequent quarters, with an increase to 0.19 by December 2023 and hovering around 0.13 to 0.17 in the following quarters up to December 2024. This indicates that Polaris Industries Inc made efforts to enhance its liquidity position, although the ratio remained relatively low compared to the peak seen in September 2020.
Overall, the trend in Polaris Industries Inc's cash ratio reflects fluctuations in the company's ability to meet its short-term obligations solely through its cash and cash equivalents. Investors and stakeholders should continue to monitor this ratio to assess the company's liquidity risk and financial strength.