Polaris Industries Inc (PII)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,691,700 | 2,767,600 | 2,559,000 | 2,207,500 | 1,627,000 |
| Total current liabilities | US$ in thousands | 1,933,800 | 2,328,600 | 2,230,100 | 1,889,400 | 1,528,000 |
| Current ratio | 1.39 | 1.19 | 1.15 | 1.17 | 1.06 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,691,700K ÷ $1,933,800K
= 1.39
The current ratio of Polaris Inc has shown a generally increasing trend over the past five years. As of December 31, 2023, the company's current ratio stands at 1.39, indicating an improvement in its short-term liquidity position compared to the previous years. This suggests that Polaris Inc is in a stronger financial position to meet its short-term obligations using its current assets. It is important to note that a current ratio above 1.0 typically indicates that the company has more current assets than current liabilities, providing a buffer for any potential liquidity challenges. Overall, the increasing current ratio trend for Polaris Inc reflects a positive development in its liquidity management and ability to handle short-term financial obligations effectively.