Polaris Industries Inc (PII)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,954,300 | 1,504,200 | 1,247,400 | 1,308,600 | 1,526,800 |
| Total assets | US$ in thousands | 5,516,300 | 5,217,900 | 5,047,800 | 4,632,700 | 4,430,500 |
| Debt-to-assets ratio | 0.35 | 0.29 | 0.25 | 0.28 | 0.34 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,954,300K ÷ $5,516,300K
= 0.35
The debt-to-assets ratio of Polaris Inc has fluctuated over the past five years. In 2023, the ratio decreased to 0.35 from 0.39 in 2022, indicating that the company relied less on debt financing to fund its assets. This may suggest a stronger financial position in terms of leverage as a lower ratio indicates a lower proportion of debt relative to total assets. However, it is important to note that the ratio was higher in 2021 at 0.36 and in 2019 at 0.38, which could indicate increased reliance on debt in those years. Overall, the trend in the debt-to-assets ratio for Polaris Inc shows some variability, and further analysis of the company's financial strategy and performance is necessary to fully evaluate its leverage position.