Polaris Industries Inc (PII)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,525,200 | 5,516,300 | 5,217,900 | 5,047,800 | 4,632,700 |
| Total stockholders’ equity | US$ in thousands | 1,289,900 | 1,418,400 | 1,099,000 | 1,224,300 | 1,144,500 |
| Financial leverage ratio | 4.28 | 3.89 | 4.75 | 4.12 | 4.05 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,525,200K ÷ $1,289,900K
= 4.28
The financial leverage ratio of Polaris Industries Inc has shown fluctuations over the past five years. It increased from 4.05 in 2020 to 4.75 in 2022, indicating a higher level of financial risk as the company relied more on debt to finance its operations during that period. However, in 2023, the ratio decreased to 3.89, suggesting a reduction in financial risk as the company possibly paid down some debt or increased its equity base. The ratio then increased again to 4.28 in 2024, although not reaching the peak of 2022. Overall, the company's financial leverage ratio has fluctuated, indicating varying levels of debt utilization and financial risk management over the years.