Polaris Industries Inc (PII)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 700,900 | 804,500 | 712,000 | 521,000 | 483,700 |
| Total assets | US$ in thousands | 5,516,300 | 5,217,900 | 5,047,800 | 4,632,700 | 4,430,500 |
| Operating ROA | 12.71% | 15.42% | 14.11% | 11.25% | 10.92% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $700,900K ÷ $5,516,300K
= 12.71%
Polaris Inc's operating return on assets (operating ROA) has shown a stable and positive trend over the past five years. The operating ROA increased from 8.98% in 2019 to 11.25% in 2023, indicating the company's ability to generate operating income relative to its assets has improved.
The highest operating ROA was observed in 2022 at 14.49%, suggesting a peak in the company's efficiency in utilizing its assets to generate operating profits. This could be attributed to effective cost management or increased revenue generation during that period.
Overall, Polaris Inc's operating ROA trend reflects a positive performance, demonstrating the company's operational efficiency and ability to generate returns from its assets over the years. However, it is worth monitoring this ratio in the future to ensure sustained profitability and effective asset utilization.