Polaris Industries Inc (PII)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.25% | 23.01% | 21.57% | 22.05% | 24.59% |
| Operating profit margin | 7.96% | 9.45% | 8.77% | 7.48% | 7.21% |
| Pretax margin | 7.04% | 7.10% | 7.71% | 3.08% | 6.08% |
| Net profit margin | 5.71% | 5.25% | 6.08% | 1.79% | 4.83% |
Polaris Inc's profitability ratios have exhibited fluctuations over the past five years. The gross profit margin, which indicates the percentage of revenue remaining after accounting for the cost of goods sold, has shown a declining trend from 24.31% in 2019 to 21.94% in 2023.
The operating profit margin, reflecting the company's ability to generate profits from its core operations, has also varied, with a notable decrease from 8.80% in 2022 to 6.95% in 2023. This suggests potential challenges in controlling operating expenses and maintaining operational efficiency.
The pretax margin, representing the percentage of revenue that translates into pre-tax profits, has fluctuated over the years, with a significant increase from 2.01% in 2020 to 8.86% in 2022 before declining to 6.94% in 2023. This fluctuation may indicate changes in tax efficiency and overall financial performance.
Furthermore, the net profit margin, which shows the proportion of revenue that translates into net income, has also varied, with a peak of 6.02% in 2021 and a decline to 5.63% in 2023. This suggests varying levels of profitability after considering all expenses and taxes.
Overall, while Polaris Inc has demonstrated profitability over the years, the fluctuating trends in its profitability margins indicate potential challenges in maintaining consistent profitability levels and controlling costs effectively. Further analysis of the underlying factors driving these fluctuations would be beneficial to assess the company's financial health and future prospects.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.71% | 15.42% | 14.11% | 11.25% | 10.92% |
| Return on assets (ROA) | 9.11% | 8.57% | 9.78% | 2.69% | 7.31% |
| Return on total capital | 22.10% | 26.00% | 27.11% | 11.47% | 18.43% |
| Return on equity (ROE) | 35.45% | 40.68% | 40.34% | 10.90% | 29.24% |
Polaris Inc's profitability ratios show varying levels of performance over the past five years.
The Operating return on assets (Operating ROA) has been relatively consistent, ranging from 8.98% in 2019 to 14.49% in 2022, with a slight decline to 11.25% in 2023. This metric indicates the company's ability to generate profit from its assets before considering interest and taxes.
The Return on assets (ROA) has fluctuated more significantly, with a low of 2.69% in 2020 and a high of 9.78% in 2021. This ratio reflects the company's overall efficiency in generating profit from its total assets.
Return on total capital has generally shown an upward trend, reaching 25.38% in 2022 before declining slightly to 21.00% in 2023. This ratio measures the company's ability to generate profit from both debt and equity capital invested.
Return on equity (ROE) has also displayed fluctuations, ranging from 10.79% in 2020 to a high of 40.22% in 2022. In 2023, ROE stood at 35.19%. This ratio indicates the return generated on the shareholders' equity investment in the company.
Overall, while Polaris Inc's profitability ratios have shown some variability, the company has generally demonstrated a solid ability to generate profit relative to its assets, capital, and equity over the past five years.