Polaris Industries Inc (PII)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,418,400 | 1,099,000 | 1,224,300 | 1,144,800 | 1,108,200 |
| Debt-to-equity ratio | 1.38 | 1.37 | 1.02 | 1.14 | 1.38 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,954,300K ÷ $1,418,400K
= 1.38
The debt-to-equity ratio of Polaris Inc has exhibited fluctuations over the past five years. In 2023, the ratio decreased to 1.34 from 1.85 in 2022, indicating a reduction in financial leverage and a stronger equity position relative to debt. This improvement suggests that Polaris has potentially paid down debt or increased shareholder equity.
Comparing to the ratio in prior years, Polaris's debt-to-equity ratio has shown variability. While the ratio was higher in 2022 and 2019 at 1.85 and 1.51 respectively, it was lower in 2023 and 2020 at 1.34 and 1.25, implying differing levels of leverage and financial risk during these periods.
Overall, the movement of Polaris Inc's debt-to-equity ratio signals changes in the company's capital structure over the years, with the recent decrease in 2023 potentially indicating a more conservative financial strategy or improved operational performance in managing debt levels.