Polaris Industries Inc (PII)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 287,800 | 291,300 | 322,700 | 318,800 | 367,800 | 295,300 | 340,400 | 322,900 | 324,500 | 318,900 | 314,200 | 375,400 | 509,200 | 316,500 | 288,800 | 432,400 | 634,700 | 820,600 | 544,400 | 424,400 |
| Short-term investments | US$ in thousands | — | — | 4,800 | 4,700 | 900 | 7,900 | 6,700 | 1,400 | 5,900 | 7,000 | 5,400 | 2,700 | — | 31,000 | 29,000 | 46,000 | 59,000 | 44,000 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,293,200 | 2,252,700 | 1,975,000 | 1,860,600 | 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 |
| Quick ratio | 0.13 | 0.13 | 0.17 | 0.17 | 0.19 | 0.12 | 0.14 | 0.14 | 0.14 | 0.15 | 0.14 | 0.17 | 0.23 | 0.19 | 0.17 | 0.26 | 0.37 | 0.39 | 0.29 | 0.28 |
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, also known as the acid-test ratio, provides insight into a company's ability to meet its short-term obligations using its most liquid assets. For Polaris Industries Inc, the quick ratio has exhibited fluctuations over the past few years.
From March 31, 2020, to June 30, 2021, the quick ratio fluctuated around the range of 0.17 to 0.39, showing some variability in the company's ability to cover its short-term liabilities with its quick assets (cash, marketable securities, and accounts receivable). The ratio dropped significantly to 0.17 as of June 30, 2021, indicating a potential strain on the company's liquidity position.
Subsequently, from September 30, 2021, to December 31, 2024, the quick ratio generally remained below 0.25, signaling ongoing challenges in meeting immediate obligations with readily available assets. There were minor improvements in certain quarters, such as reaching 0.23 on December 31, 2021 and 0.19 on March 31, 2024, but the ratio remained relatively low overall.
Overall, the trend in Polaris Industries Inc's quick ratio suggests potential liquidity concerns, as the ratio has consistently been below the ideal benchmark of 1.0. This indicates the company may face difficulties in meeting its short-term financial obligations using its quick assets alone. Investors and stakeholders should continue monitoring the company's liquidity position and overall financial health.