Polaris Industries Inc (PII)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 243,500 | 304,600 | 439,600 | 536,800 | 685,100 | 815,100 | 868,300 | 865,400 | 799,100 | 697,100 | 598,100 | 619,600 | 709,000 | 816,900 | 901,000 | 391,000 | 212,300 | 85,859 | -23,287 | 407,235 |
| Total assets | US$ in thousands | 5,525,200 | 5,629,700 | 5,708,900 | 5,567,400 | 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 |
| Operating ROA | 4.41% | 5.41% | 7.70% | 9.64% | 12.42% | 14.22% | 15.88% | 16.36% | 15.31% | 13.69% | 11.42% | 12.08% | 14.05% | 16.77% | 19.91% | 8.66% | 4.58% | 1.79% | -0.54% | 8.55% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $243,500K ÷ $5,525,200K
= 4.41%
Polaris Industries Inc's operating return on assets (Operating ROA) has shown fluctuations over the past few years. The ratio, which indicates the company's ability to generate profits from its operating assets, started at 8.55% on March 31, 2020, and experienced a slight dip to -0.54% on June 30, 2020, indicating a period of inefficiency or challenges.
However, Polaris Industries Inc quickly improved its operating ROA, reaching 19.91% on June 30, 2021, displaying a significant increase in profitability. The ratio remained relatively high for the following quarters, with values above 10% up to March 31, 2023, signaling strong performance in utilizing its assets to generate operating income.
From March 31, 2023, to December 31, 2024, Polaris Industries Inc experienced a gradual decline in its operating ROA, dropping from 16.36% to 4.41%. This decline may indicate challenges in maintaining profitability relative to its operating assets during this period.
Overall, Polaris Industries Inc's operating return on assets has shown volatility, with periods of significant improvement followed by slight declines. It is essential for the company to monitor and manage its asset utilization efficiently to sustain and enhance its profitability in the future.