Polaris Industries Inc (PII)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,289,900 | 1,418,400 | 1,099,000 | 1,224,300 | 1,144,500 |
| ROE | 8.59% | 35.45% | 54.90% | 40.34% | 10.90% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $110,800K ÷ $1,289,900K
= 8.59%
Polaris Industries Inc's return on equity (ROE) has demonstrated significant fluctuations over the past five years. The ROE stood at 10.90% at the end of December 31, 2020, showing a modest return on shareholder equity. Subsequently, there was a substantial increase in ROE to 40.34% by December 31, 2021, indicating improved profitability and efficiency in generating returns for shareholders.
The trend continued to rise, reaching a peak of 54.90% by December 31, 2022, reflecting a remarkable performance in utilizing equity to generate profits. However, there was a decline in ROE to 35.45% by December 31, 2023, although still maintaining a relatively high level compared to previous years.
By the end of December 31, 2024, Polaris Industries Inc experienced a sharp decrease in ROE to 8.59%, marking a substantial drop in the return on shareholder equity. This decline could indicate potential challenges in efficiently using equity to generate profits or changes in the company's financial structure.
In summary, Polaris Industries Inc's ROE has exhibited variability over the past years, with notable peaks and troughs. Stakeholders should further investigate the factors contributing to these fluctuations to assess the company's performance and sustainability in generating returns for its shareholders.