Polaris Industries Inc (PII)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 282,300 | 390,800 | 532,300 | 606,300 | 726,300 | 828,200 | 868,300 | 868,600 | 802,300 | 692,400 | 593,300 | 614,800 | 706,700 | 823,200 | 840,800 | 706,000 | 523,900 | 336,617 | 291,710 | 343,648 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,289,900 | 1,341,500 | 1,338,100 | 1,378,100 | 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 | 1,144,500 | 947,500 | 753,000 | 1,001,600 |
| Return on total capital | 21.89% | 29.13% | 39.78% | 44.00% | 51.21% | 62.14% | 69.66% | 75.39% | 73.00% | 68.09% | 55.38% | 54.96% | 57.72% | 67.93% | 75.03% | 66.64% | 45.78% | 35.53% | 38.74% | 34.31% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $282,300K ÷ ($—K + $1,289,900K)
= 21.89%
The return on total capital for Polaris Industries Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio ranged from a low of 21.89% in December 31, 2024, to a high of 75.39% in March 31, 2023.
Throughout this period, there were noticeable peaks and troughs, indicating potential changes in the company's efficiency in generating returns from its capital investments. The ratio experienced an upward trend initially, reaching its highest point in the first quarter of 2023, before gradually declining towards the end of the period.
The average return on total capital for Polaris Industries Inc over this period would give a clearer indication of its overall performance in utilizing its capital resources effectively. It may be valuable to compare this ratio with industry benchmarks or competitors to assess Polaris' relative performance in terms of capital efficiency.