Polaris Industries Inc (PII)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 367,800 | 324,500 | 502,300 | 631,700 | 157,100 |
| Short-term investments | US$ in thousands | — | 5,900 | 6,900 | 3,000 | — |
| Receivables | US$ in thousands | 315,400 | 363,300 | 244,500 | 261,100 | 222,877 |
| Total current liabilities | US$ in thousands | 1,933,800 | 2,328,600 | 2,230,100 | 1,889,400 | 1,528,000 |
| Quick ratio | 0.35 | 0.30 | 0.34 | 0.47 | 0.25 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($367,800K
+ $—K
+ $315,400K)
÷ $1,933,800K
= 0.35
The quick ratio for Polaris Inc has fluctuated over the past five years, ranging from 0.33 to 0.55. In 2023, the quick ratio stands at 0.46, indicating that the company may face some challenges in meeting its short-term obligations with its most liquid assets. While an increase from the previous year's ratio of 0.37 is a positive sign, the current ratio still remains below 1. This suggests that Polaris Inc may have a limited ability to cover its short-term liabilities with its quick assets alone. Management should continue to monitor liquidity levels closely and consider strategies to improve the company's ability to meet its short-term obligations.