Polaris Industries Inc (PII)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.44% | 21.94% | 22.81% | 23.70% | 24.33% |
| Operating profit margin | 4.05% | 7.84% | 9.37% | 8.65% | 8.36% |
| Pretax margin | 1.96% | 6.94% | 8.86% | 7.63% | 2.01% |
| Net profit margin | 1.54% | 5.63% | 7.03% | 6.02% | 1.78% |
Polaris Industries Inc's profitability ratios indicate fluctuations over the past five years. The gross profit margin has shown a decreasing trend, declining from 24.33% in 2020 to 20.44% in 2024. This suggests a reduction in the percentage of revenue retained after deducting the cost of goods sold.
Similarly, the operating profit margin has been volatile, with a peak of 9.37% in 2022 but dropping significantly to 4.05% in 2024. This indicates fluctuations in the company's ability to control operating expenses and generate profits from its core business activities.
The pretax margin also experienced variability, reaching a high of 8.86% in 2022 but decreasing to 1.96% in 2024. This suggests fluctuations in Polaris Industries Inc's ability to generate profits before accounting for taxes.
The net profit margin, which reflects the company's bottom-line efficiency, showed a similar pattern, with a peak of 7.03% in 2022 but declining to 1.54% in 2024. This indicates fluctuations in the company's ability to generate profits after all expenses have been deducted.
Overall, the profitability ratios of Polaris Industries Inc demonstrate volatility and declining trends over the five-year period, highlighting challenges in maintaining and improving profitability levels. Investors and stakeholders may need to assess the company's strategies to address these fluctuations and enhance its overall profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.26% | 12.71% | 15.42% | 14.05% | 12.68% |
| Return on assets (ROA) | 2.01% | 9.11% | 11.56% | 9.78% | 2.69% |
| Return on total capital | 21.54% | 49.41% | 75.90% | 54.30% | 17.65% |
| Return on equity (ROE) | 8.59% | 35.45% | 54.90% | 40.34% | 10.90% |
Polaris Industries Inc's profitability ratios show fluctuating performance over the years.
- Operating return on assets (Operating ROA): The company's operating ROA has generally been increasing from 12.68% in 2020 to 15.42% in 2022 before dropping to 5.26% in 2024. This ratio indicates the company's ability to generate profits from its operational assets.
- Return on assets (ROA): ROA saw a significant increase from 2.69% in 2020 to 11.56% in 2022, showing a strong improvement in the company's efficiency in generating profits from its total assets. However, it dropped to 2.01% in 2024.
- Return on total capital: The return on total capital spiked from 17.65% in 2020 to 75.90% in 2022, indicating the company's ability to generate returns for both equity and debt holders. This ratio then decreased to 21.54% in 2024.
- Return on equity (ROE): ROE also showed an upward trend from 10.90% in 2020 to 54.90% in 2022, reflecting the company's ability to generate returns for its shareholders. However, the ratio declined to 8.59% in 2024, indicating a decrease in shareholder profitability.
Overall, Polaris Industries Inc's profitability ratios demonstrate some volatility, with initial growth followed by declines in certain ratios by the end of the period. Further analysis into the reasons behind these fluctuations would be beneficial in understanding the company's performance.