Polaris Industries Inc (PII)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.28 | 3.89 | 4.75 | 4.12 | 4.05 |
Polaris Industries Inc's solvency ratios reflect a consistently low level of debt relative to its assets, capital, and equity over the years between December 31, 2020, and December 31, 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio were all at 0.00 for each year in the data provided, indicating that the company did not rely heavily on debt to finance its operations or investments during this period.
The Financial leverage ratio, which measures the company's reliance on debt financing relative to its equity, fluctuated within a relatively narrow range from 3.89 to 4.75. This suggests that while there was some variation in the proportion of debt used in the company's capital structure, overall, Polaris maintained a conservative approach to leveraging, with a focus on a healthy balance between debt and equity.
Overall, these solvency ratios indicate that Polaris Industries Inc has exhibited a strong financial position with low debt levels and a conservative debt structure throughout the period analyzed. This may suggest a lower risk of financial distress and a solid foundation for future growth and stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.03 | 5.61 | 11.63 | 15.04 | 3.03 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. Looking at the data provided for Polaris Industries Inc, the interest coverage ratios for the five consecutive years are as follows: 3.03 in December 31, 2020, 15.04 in December 31, 2021, 11.63 in December 31, 2022, 5.61 in December 31, 2023, and 2.03 in December 31, 2024.
A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its earnings. Polaris Industries Inc's interest coverage has shown fluctuations over the years, with a strong improvement in 2021, followed by a slight decline in the subsequent years. While the ratio in 2021 and 2022 suggests a comfortably high ability to cover interest payments, the ratios in 2023 and 2024 have decreased, indicating a potentially tighter financial position regarding debt obligations.
It is essential for stakeholders to closely monitor the interest coverage ratio trend to assess the company's financial health and its ability to manage debt efficiently. The declining trend from 2021 to 2024 may raise concerns about the company's ability to service its debt obligations in the future if the trend continues. Further analysis of the company's cash flow and debt structure would provide additional insights into Polaris Industries Inc's financial stability.