Polaris Industries Inc (PII)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 287,800 | 367,800 | 324,500 | 509,200 | 634,700 |
| Short-term investments | US$ in thousands | — | 900 | 5,900 | — | 59,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,293,200 | 1,933,800 | 2,328,600 | 2,230,100 | 1,889,400 |
| Quick ratio | 0.13 | 0.19 | 0.14 | 0.23 | 0.37 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($287,800K
+ $—K
+ $—K)
÷ $2,293,200K
= 0.13
The quick ratio of Polaris Industries Inc has shown a declining trend over the past five years. Starting at 0.37 on December 31, 2020, the ratio decreased to 0.23 by December 31, 2021, and further dropped to 0.14 by December 31, 2022. This suggests that the company may have difficulties meeting its short-term obligations using its most liquid assets. Although there was a slight improvement to 0.19 by December 31, 2023, the ratio fell again to 0.13 by December 31, 2024. This downward trend indicates a potential liquidity risk for the company, as its current assets available for meeting immediate liabilities have been decreasing relative to its current liabilities. Polaris Industries Inc may need to closely monitor its liquidity position and take appropriate measures to ensure it can fulfill its short-term financial obligations effectively.