Polaris Industries Inc (PII)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.28 | 4.20 | 4.27 | 4.04 | 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 |
Polaris Industries Inc has maintained a strong solvency position based on the provided solvency ratios.
The debt-to-assets ratio has consistently remained at 0.00 across all reported periods, indicating that the company's total debt is effectively insignificant compared to its total assets. This signifies a low financial risk and implies that the company has a strong ability to meet its debt obligations.
Similarly, the debt-to-capital ratio has also remained at 0.00 consistently, demonstrating that Polaris Industries relies minimally on debt financing in its capital structure. This suggests a conservative approach to leverage and a strong financial position.
The debt-to-equity ratio, which measures the proportion of debt and equity in the company's capital structure, has also consistently stood at 0.00. This indicates that the company's financial structure is mostly equity-funded, reflecting a low level of financial risk and a healthy balance sheet composition.
Furthermore, the financial leverage ratio, which reflects the extent to which the company is using debt to finance its operations, has shown a fluctuating trend but has generally remained at moderate levels ranging from 3.89 to 5.73. This suggests that while there is some level of financial leverage employed, it is within manageable limits and not excessive.
Overall, based on the solvency ratios analyzed, Polaris Industries Inc appears to have a stable and secure financial position with low debt levels and a conservative approach to leverage, indicating a strong capacity to meet its financial obligations and weather potential economic challenges.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.06 | 2.85 | 4.00 | 4.66 | 5.75 | 7.07 | 8.29 | 9.85 | 11.19 | 11.94 | 12.18 | 13.82 | 15.99 | 17.04 | 15.34 | 11.39 | 7.85 | 4.93 | 4.13 | 4.68 |
The interest coverage ratio for Polaris Industries Inc shows the company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses with operating income.
From March 31, 2020, to December 31, 2024, Polaris' interest coverage ratio fluctuated. It started at 4.68 in March 2020, increased to 17.04 in September 2021, and then gradually declined to 2.06 by December 2024.
The increase in the interest coverage ratio from 2020 to 2021 indicates an improvement in Polaris' ability to cover interest expenses. However, the declining trend from 2021 onwards may raise concerns about the company's ability to service its debt obligations from its operating income.
A declining interest coverage ratio could potentially signal financial distress or a strain on the company's profitability. It would be important for stakeholders to monitor this ratio closely to assess Polaris Industries Inc's financial health and debt servicing capability in the future.