Polaris Industries Inc (PII)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 502,800 | 594,900 | 629,500 | 490,600 | 447,100 | 338,400 | 266,700 | 429,700 | 493,900 | 605,900 | 658,100 | 264,300 | 124,800 | 24,931 | -53,469 | 270,131 | 323,931 | 316,474 | 323,603 | 327,943 |
| Total stockholders’ equity | US$ in thousands | 1,418,400 | 1,332,700 | 1,246,500 | 1,152,100 | 1,099,000 | 1,016,900 | 1,071,400 | 1,118,600 | 1,224,300 | 1,211,800 | 1,120,600 | 1,059,400 | 1,144,800 | 947,500 | 753,000 | 1,001,600 | 1,108,200 | 1,013,040 | 951,909 | 879,202 |
| ROE | 35.45% | 44.64% | 50.50% | 42.58% | 40.68% | 33.28% | 24.89% | 38.41% | 40.34% | 50.00% | 58.73% | 24.95% | 10.90% | 2.63% | -7.10% | 26.97% | 29.23% | 31.24% | 34.00% | 37.30% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $502,800K ÷ $1,418,400K
= 35.45%
To analyze Polaris Inc's return on equity (ROE), we observe fluctuations in the ROE over the past eight quarters. The ROE has shown a generally increasing trend from Q2 2022 to Q2 2023, reaching a peak of 49.88% in Q2 2023 before slightly declining in the following quarters.
The ROE values indicate how efficiently the company is generating profits from its equity base. A higher ROE suggests that the company is effectively using its shareholders' equity to generate profits.
The consistent improvement in ROE from Q2 2022 to Q2 2023 reflects positively on Polaris Inc's operational efficiency and profitability. However, the slight decline in the last two quarters may warrant further investigation into factors influencing the company's performance during these periods.
Overall, Polaris Inc's ROE performance demonstrates a strong ability to generate returns on the equity invested in the company, which is a key indicator of financial health and management effectiveness. Further analysis of the company's financial statements and business operations could provide additional insights into the factors driving these ROE trends.