Polaris Industries Inc (PII)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 700,900 | 815,100 | 868,300 | 865,400 | 804,500 | 707,500 | 611,400 | 629,000 | 713,000 | 1,124,600 | 1,205,800 | 699,700 | 521,000 | 85,900 | -23,200 | 407,300 | 483,700 | 490,098 | 498,667 | 486,024 |
| Total assets | US$ in thousands | 5,516,300 | 5,733,000 | 5,469,600 | 5,289,900 | 5,217,900 | 5,093,400 | 5,238,900 | 5,128,900 | 5,047,800 | 4,870,300 | 4,525,200 | 4,513,700 | 4,632,700 | 4,783,600 | 4,312,700 | 4,763,900 | 4,430,500 | 4,527,420 | 4,364,210 | 4,408,720 |
| Operating ROA | 12.71% | 14.22% | 15.88% | 16.36% | 15.42% | 13.89% | 11.67% | 12.26% | 14.12% | 23.09% | 26.65% | 15.50% | 11.25% | 1.80% | -0.54% | 8.55% | 10.92% | 10.83% | 11.43% | 11.02% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $700,900K ÷ $5,516,300K
= 12.71%
To analyze the operating return on assets (operating ROA) of Polaris Inc based on the provided data, we observe a fluctuating trend over the last eight quarters. The operating ROA has ranged from a low of 10.55% in Q2 2022 to a high of 15.44% in Q1 2023.
It is evident that the operating ROA has generally been on an upward trajectory from Q2 2022 to Q1 2023, indicating improving operational efficiency and profitability in utilizing the company's assets to generate operating income. However, there was a slight decline in Q4 2023 compared to the previous quarter.
Overall, the average operating ROA over the eight quarters stands at around 13.45%, showcasing the company's ability to generate operating profits relative to its total assets. This suggests that Polaris Inc has been effective in managing its assets to generate operational earnings during the period under review. Further analysis could assess the factors contributing to these fluctuations to provide actionable insights for improving performance in the future.