Polaris Industries Inc (PII)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 502,800 | 447,100 | 493,900 | 124,800 | 324,000 |
| Total assets | US$ in thousands | 5,516,300 | 5,217,900 | 5,047,800 | 4,632,700 | 4,430,500 |
| ROA | 9.11% | 8.57% | 9.78% | 2.69% | 7.31% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $502,800K ÷ $5,516,300K
= 9.11%
Polaris Inc's return on assets (ROA) has fluctuated over the past five years. In 2023, the ROA stands at 9.11%, reflecting an increase from the previous year's 8.57%. This improvement suggests that the company is generating more profit relative to its total assets compared to the prior year. The 2023 ROA also surpasses the 5-year low of 2.69% recorded in 2020, indicating a significant recovery in profitability efficiency since then.
It is worth noting that Polaris Inc achieved its highest ROA of 9.78% in 2021, indicating strong asset utilization and profitability during that year. However, the ROA decreased in the subsequent year before rebounding in 2023. Overall, the company has shown the ability to effectively generate earnings from its assets, with the 2023 ROA suggesting improved efficiency in asset management compared to the prior year and the 5-year historical average.