Polaris Industries Inc (PII)
Debt-to-equity 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-equity ratio | 1.38 | 0.00 | 0.00 | 0.00 | 1.37 | 1.55 | 1.36 | 1.24 | 1.02 | 1.20 | 1.13 | 1.21 | 1.14 | 1.38 | 1.83 | 1.98 | 1.38 | 1.68 | 1.91 | 2.30 |
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 shown a decreasing trend from Q4 2022 to Q4 2023, starting at 2.07 and decreasing to 1.34. This indicates that the company's reliance on debt in relation to its equity has reduced over this period.
It is important to note that a higher debt-to-equity ratio signifies higher financial leverage and potentially higher financial risk, as the company is financing a larger portion of its operations through debt. Conversely, a lower debt-to-equity ratio suggests a more conservative capital structure and lower risk.
Overall, the downward trend in Polaris Inc's debt-to-equity ratio signifies a positive development in the company's financial structure, indicating a potentially lower level of financial risk and a stronger equity base relative to its debt obligations. It is important to continue monitoring this ratio in future periods to ensure that the company maintains a sustainable and balanced capital structure.