Polaris Industries Inc (PII)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,516,300 | 5,733,000 | 5,469,600 | 5,289,900 | 5,217,900 | 5,093,400 | 5,238,900 | 5,128,900 | 5,047,800 | 4,870,300 | 4,525,200 | 4,513,700 | 4,632,700 | 4,783,600 | 4,312,700 | 4,763,900 | 4,430,500 | 4,527,420 | 4,364,210 | 4,408,720 |
| 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 |
| Financial leverage ratio | 3.89 | 4.30 | 4.39 | 4.59 | 4.75 | 5.01 | 4.89 | 4.59 | 4.12 | 4.02 | 4.04 | 4.26 | 4.05 | 5.05 | 5.73 | 4.76 | 4.00 | 4.47 | 4.58 | 5.01 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,516,300K ÷ $1,418,400K
= 3.89
The financial leverage ratio of Polaris Inc has been relatively stable over the past eight quarters, ranging from a low of 3.86 in Q4 2023 to a high of 4.95 in Q3 2022. This ratio indicates that, on average, the company has been financing its assets with a higher proportion of debt compared to equity.
A decreasing trend in the financial leverage ratio from Q3 2022 to Q4 2023 suggests that the company may have been reducing its reliance on debt financing in favor of equity financing during this period. However, the ratio remains relatively high, indicating a significant level of financial leverage in the company's capital structure.
Investors and creditors should carefully monitor Polaris Inc's financial leverage ratio to assess its ability to meet its debt obligations and manage financial risk effectively. A high financial leverage ratio can indicate higher financial risk and potential vulnerability to economic downturns or interest rate fluctuations.