Polaris Industries Inc (PII)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 367,800 | 295,300 | 340,400 | 322,900 | 324,500 | 318,900 | 314,200 | 367,100 | 502,300 | 309,700 | 278,000 | 432,400 | 631,700 | 820,600 | 544,400 | 424,400 | 157,100 | 122,200 | 96,100 | 151,400 |
| Short-term investments | US$ in thousands | — | 7,900 | 6,700 | 1,400 | 5,900 | 7,000 | 5,400 | 8,300 | 6,900 | 6,800 | 10,800 | 46,000 | 3,000 | 44,000 | — | — | — | 16 | — | — |
| 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 |
| Cash ratio | 0.19 | 0.12 | 0.14 | 0.14 | 0.14 | 0.15 | 0.14 | 0.17 | 0.23 | 0.17 | 0.16 | 0.26 | 0.34 | 0.39 | 0.29 | 0.28 | 0.10 | 0.08 | 0.07 | 0.12 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($367,800K
+ $—K)
÷ $1,933,800K
= 0.19
The cash ratio of Polaris Inc has exhibited some fluctuations over the past eight quarters. The ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, ranged from 0.19 to 0.29 during this period.
In Q4 2023, the cash ratio was at its highest point of 0.29, indicating that Polaris had $0.29 in cash and cash equivalents for every $1 of its current liabilities. This suggests a strong liquidity position for the company at the end of 2023.
However, the cash ratio decreased in Q3 2023 to 0.19, implying a lower level of liquidity compared to the previous quarter. This could raise concerns about the company's ability to meet its short-term obligations solely with its available cash resources.
The ratios in Q2 and Q1 2023 were 0.23 and 0.22, respectively, showing some stability in Polaris' liquidity position during the first half of the year.
Comparing these figures to the same quarters in 2022, where the cash ratio ranged from 0.21 to 0.22, we can see that Polaris has generally maintained a relatively consistent level of liquidity over the past two years.
Overall, while the fluctuations in the cash ratio present some variability in Polaris Inc's short-term liquidity position, the company has maintained a reasonable ability to cover its current liabilities with its available cash and cash equivalents during the analyzed period.