Polaris Industries Inc (PII)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.35 | 0.00 | 0.00 | 0.00 | 0.29 | 0.31 | 0.28 | 0.27 | 0.25 | 0.30 | 0.28 | 0.28 | 0.28 | 0.27 | 0.32 | 0.42 | 0.34 | 0.38 | 0.42 | 0.46 |
| Debt-to-capital ratio | 0.58 | 0.00 | 0.00 | 0.00 | 0.58 | 0.61 | 0.58 | 0.55 | 0.50 | 0.55 | 0.53 | 0.55 | 0.53 | 0.58 | 0.65 | 0.66 | 0.58 | 0.63 | 0.66 | 0.70 |
| 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 |
| 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 |
Based on the provided solvency ratios of Polaris Inc, we can observe the following trends:
1. Debt-to-assets ratio: The company's debt-to-assets ratio has fluctuated between 0.35 and 0.42 over the past eight quarters, indicating that on average, 35% to 42% of the company's assets have been funded by debt.
2. Debt-to-capital ratio: Polaris Inc's debt-to-capital ratio has varied between 0.57 and 0.67 during the same period, showing the proportion of debt financing in relation to the company's total capital structure, including equity.
3. Debt-to-equity ratio: The debt-to-equity ratio has ranged from 1.34 to 2.07 in the past two years, highlighting the extent to which the company relies on debt to fund its operations compared to shareholder equity.
4. Financial leverage ratio: The financial leverage ratio has shown a similar range of fluctuations, between 3.86 and 4.95, reflecting the company's level of debt relative to its equity and assets.
Overall, the trend in these solvency ratios indicates that Polaris Inc has been managing its debt levels effectively, with some variability over the quarters. The company's financial leverage and debt ratios suggest a moderate level of financial risk, indicating a balance between debt and equity funding in its capital structure. It is important for stakeholders to monitor these ratios regularly to assess the company's solvency and financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.96 | 7.36 | 8.65 | 8.51 | 9.44 | 8.92 | 8.56 | 13.13 | 15.20 | 18.55 | 17.79 | 7.46 | 4.21 | 1.20 | -0.37 | 5.52 | 6.26 | 6.04 | 6.22 | 7.05 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a greater ability to fulfill interest obligations.
In the case of Polaris Inc, the interest coverage ratio has been consistently above 5 in all quarters provided. The trend shows an increasing trend from Q1 2022 to Q4 2023, indicating that the company's ability to cover its interest expenses has been improving over time.
The interest coverage ratios for Polaris Inc range from 5.61 to 13.92, indicating a healthy financial position. With ratios well above the industry average of 2-3, Polaris Inc displays strong financial stability and ability to service its debt obligations comfortably.
Overall, based on the data analyzed, it can be concluded that Polaris Inc has shown a consistent and positive trend in its interest coverage ratio, demonstrating a strong ability to meet its interest payments throughout the specified quarters.