Polaris Industries Inc (PII)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 110,800 | 502,800 | 603,400 | 493,900 | 124,800 |
| Total assets | US$ in thousands | 5,525,200 | 5,516,300 | 5,217,900 | 5,047,800 | 4,632,700 |
| ROA | 2.01% | 9.11% | 11.56% | 9.78% | 2.69% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $110,800K ÷ $5,525,200K
= 2.01%
Based on the data provided for Polaris Industries Inc, the return on assets (ROA) has shown significant fluctuations over the past five years. In December 2020, the ROA stood at 2.69%, indicating that for every dollar of assets, the company generated a return of 2.69 cents.
There was a notable increase in performance in December 2021, with the ROA reaching 9.78%. This suggests that the company became more efficient in utilizing its assets to generate profits. The following year, in December 2022, the ROA further improved to 11.56%, indicating a strong performance in asset utilization.
However, in December 2023, the ROA decreased to 9.11%, showing a slight decline in efficiency compared to the previous year. Finally, by December 2024, the ROA dropped significantly to 2.01%, potentially signaling a decrease in profitability relative to the company's asset base.
Overall, the analysis of Polaris Industries Inc's ROA reveals a mix of positive and negative trends in asset efficiency and profitability over the past five years. It is essential for stakeholders to monitor these fluctuations closely to assess the company's performance and financial health accurately.