Polaris Industries Inc (PII)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,632,400 | 2,691,700 | 2,767,600 | 2,559,000 | 2,207,500 |
| Total current liabilities | US$ in thousands | 2,293,200 | 1,933,800 | 2,328,600 | 2,230,100 | 1,889,400 |
| Current ratio | 1.15 | 1.39 | 1.19 | 1.15 | 1.17 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,632,400K ÷ $2,293,200K
= 1.15
The current ratio for Polaris Industries Inc has fluctuated over the past five years. As of December 31, 2020, the company had a current ratio of 1.17, indicating that its current assets were 1.17 times its current liabilities. This ratio decreased slightly to 1.15 by the end of 2021 but then increased to 1.19 at the end of 2022.
However, there was a significant improvement in the current ratio by the end of 2023, reaching 1.39. This indicates that Polaris had a stronger ability to cover its short-term obligations with its current assets at that point. Nevertheless, by the end of 2024, the current ratio dropped back to 1.15, showing a decrease in the company's short-term liquidity position.
Overall, fluctuations in the current ratio can indicate changes in the company's liquidity and ability to meet its short-term obligations. It is essential for stakeholders to monitor these fluctuations to assess Polaris Industries Inc's financial health and management of working capital.