Polaris Industries Inc (PII)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,418,400 | 1,099,000 | 1,224,300 | 1,144,800 | 1,108,200 |
| ROE | 35.45% | 40.68% | 40.34% | 10.90% | 29.24% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $502,800K ÷ $1,418,400K
= 35.45%
Polaris Inc's return on equity (ROE) has fluctuated over the past five years. In 2023, the ROE decreased to 35.19% from 40.22% in 2022, indicating a slight decline in the company's ability to generate profits from its shareholders' equity. However, the ROE in 2023 remains relatively strong compared to previous years.
Looking further back, in 2021 and 2019, Polaris Inc achieved ROE of 39.98% and 28.88% respectively, demonstrating fluctuations in performance over time. The significant increase in ROE from 2020 to 2021 suggests an improvement in the company's profitability and efficiency in utilizing its equity.
Overall, Polaris Inc's ROE has shown variability in performance, but the company has generally been able to generate healthy returns for its shareholders, with the recent decrease in 2023 being notable. Further analysis of the company's financial statements and business operations would be helpful in understanding the factors contributing to these fluctuations in ROE.