Polaris Industries Inc (PII)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,954,300 | — | — | — | 1,504,200 | 1,571,500 | 1,453,000 | 1,382,500 | 1,247,400 | 1,457,300 | 1,264,800 | 1,278,100 | 1,308,600 | 1,307,900 | 1,377,300 | 1,982,500 | 1,526,800 | 1,702,120 | 1,815,780 | 2,018,840 |
| 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 |
| Debt-to-capital ratio | 0.58 | 0.00 | 0.00 | 0.00 | 0.58 | 0.61 | 0.58 | 0.55 | 0.50 | 0.55 | 0.53 | 0.55 | 0.53 | 0.58 | 0.65 | 0.66 | 0.58 | 0.63 | 0.66 | 0.70 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,954,300K ÷ ($1,954,300K + $1,418,400K)
= 0.58
The debt-to-capital ratio of Polaris Inc has been fluctuating over the past eight quarters. It stood at 0.57 in Q4 2023, decreased slightly to 0.62 in Q3 2023 and then remained stable in Q2 2023 at the same level. However, in Q1 2023, the ratio increased to 0.64. This follows a trend of gradual increase since Q2 2022 when the ratio was at the lowest point of 0.63.
Overall, although there have been some fluctuations, the debt-to-capital ratio has shown a general upward trend since Q2 2022, indicating a higher proportion of debt relative to capital in the company's capital structure. This trend suggests that over time, Polaris Inc has been relying more on debt financing compared to its own capital for funding its operations and investments. It is important for stakeholders to closely monitor this ratio to assess the company's leverage and financial risk.