Polaris Inc. (PII) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 7, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q1 FY2026, filed Apr 28, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the PII SEC filings page.
Polaris Inc. (PII) reported $7.3B in revenue over the twelve months to Mar 31, 2026, up 4.3% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Polaris's 2025 accounting downturn masked stronger cash generation, but heavier overhead and thinner equity left liquidity tighter.
Despite a net loss of$466M , operating cash flow reached$741M ; cash conversion diverged from earnings, reflecting noncash charges and balance-sheet movements rather than current profitability. Inventory was lower in 2025 while free cash flow reached$558M , reinforcing that working-capital release helped cash conversion without restoring reported profitability.
With revenue nearly unchanged, gross margin slipped to
The balance sheet is less forgiving: current ratio fell below 1.0x, while debt-to-equity rose to 1.8x as equity contracted. That combination means short-term obligations exceed current assets and a smaller equity base absorbs more leverage after equity fell by
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Polaris Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Polaris Inc. has an operating margin of -4.9%, meaning the company loses $5 on every $100 of revenue. This results in a profitability score of 34/100. This is down from 4.0% the prior year.
Polaris Inc.'s revenue declined 0.3% year-over-year, from $7.2B to $7.2B. This contraction results in a growth score of 9/100.
Polaris Inc. has a moderate D/E ratio of 1.82. This balance of debt and equity financing earns a leverage score of 34/100.
Polaris Inc.'s current ratio of 0.98 is below the typical benchmark, resulting in a score of 18/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Polaris Inc. has a free cash flow margin of 7.8%, earning a moderate score of 45/100. The company generates positive cash flow after capital investments, but with room for improvement.
Polaris Inc. posts a -56.2% return on equity (ROE), meaning it loses $56 for every $100 of shareholders' equity. This results in a returns score of 32/100. This is down from 8.6% the prior year.
Polaris Inc. scores 1.53, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Polaris Inc. passes 3 of 9 financial strength tests. 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
Polaris Inc. reported a net loss of $465.5M while generating $741.0M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal.
Polaris Inc. reported an operating loss of $348.7M against $131.4M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Polaris Inc. generated $1.7B in revenue in Q1 2026. This represents an increase of 8.0% from the same quarter a year earlier. Against the prior quarter it is down 13.7%.
Polaris Inc.'s EBITDA was $24.1M in Q1 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 35.4% from the same quarter a year earlier. Against the prior quarter it is up 109.5%.
Polaris Inc. reported -$47.4M in net income in Q1 2026. This represents an increase of 29.0% from the same quarter a year earlier. Against the prior quarter it is up 84.4%.
Polaris Inc. earned -$0.83 per diluted share (EPS) in Q1 2026. This represents an increase of 29.1% from the same quarter a year earlier. Against the prior quarter it is up 84.5%.
Cash & Balance Sheet
Polaris Inc. recorded an outflow of $349.9M in free cash flow in Q1 2026, representing a cash shortfall after capex. This represents a decrease of 835.1% from the same quarter a year earlier. Against the prior quarter it is down 406.9%.
Polaris Inc. held $282.0M in cash against $2.1B in long-term debt as of Q1 2026.
Polaris Inc. paid $0.68 per share in dividends in Q1 2026. This represents an increase of 1.5% from the same quarter a year earlier. Against the prior quarter it is up 1.5%.
Margins & Returns
Polaris Inc.'s gross margin was 20.2% in Q1 2026, indicating the percentage of revenue retained after direct costs. This is up 4.2 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.2 percentage points.
Polaris Inc.'s operating margin was -2.4% in Q1 2026, reflecting core business profitability. That is unchanged from the same quarter a year earlier. Against the prior quarter it is up 14.3 percentage points.
Polaris Inc.'s net profit margin was -2.9% in Q1 2026, showing the share of revenue converted to profit. This is up 1.5 percentage points from the same quarter a year earlier. Against the prior quarter it is up 12.9 percentage points.
Polaris Inc.'s ROE was -6.3% in Q1 2026, measuring profit generated per dollar of shareholder equity. This is down 0.9 percentage points from the same quarter a year earlier. Against the prior quarter it is up 30.3 percentage points.
Capital Allocation
Polaris Inc. invested $82.3M in research and development in Q1 2026. This represents a decrease of 0.7% from the same quarter a year earlier. Against the prior quarter it is down 22.3%.
Polaris Inc. spent $9.2M on share buybacks in Q1 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 283.3% from the same quarter a year earlier.
Polaris Inc. invested $29.7M in capex in Q1 2026, funding long-term assets and infrastructure. This represents a decrease of 16.6% from the same quarter a year earlier. Against the prior quarter it is down 54.1%.
PII Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q | Q2'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.7B+8.0% | $1.9B+9.5% | $1.8B+6.9% | $1.9B-5.5% | $1.5B-11.6% | $1.8B-23.3% | $1.7B-23.4% | $2.0B-11.5% |
| Cost of Revenue | $1.3B+2.6% | $1.5B+10.0% | $1.5B+6.8% | $1.5B-2.8% | $1.3B-8.2% | $1.4B-22.9% | $1.4B-21.4% | $1.5B-10.2% |
| Gross Profit | $334.8M+36.7% | $384.2M+7.3% | $380.3M+7.2% | $359.2M-15.3% | $245.0M-25.8% | $357.9M-25.0% | $354.6M-30.3% | $424.0M-16.0% |
| R&D Expenses | $82.3M-0.7% | $105.9M+35.4% | $92.8M+10.3% | $90.3M+4.0% | $82.9M-5.6% | $78.2M-15.7% | $84.1M-8.4% | $86.8M-6.9% |
| SG&A Expenses | $162.5M+58.2% | $193.9M+53.6% | $117.8M+16.7% | $127.4M+15.4% | $102.7M+3.7% | $126.2M-7.8% | $100.9M+10.5% | $110.4M+6.4% |
| Operating Income | -$39.1M-8.3% | -$320.1M-586.5% | $20.4M-69.1% | -$12.9M-110.8% | -$36.1M-192.6% | $65.8M-53.9% | $66.1M-67.1% | $119.7M-38.9% |
| EBITDA | $24.1M-35.4% | -$252.5M-273.8% | $93.0M-33.8% | $60.0M-68.3% | $37.3M-63.4% | $145.3M-32.3% | $140.5M-47.5% | $189.2M-25.7% |
| Interest Expense | $30.4M-10.9% | $31.0M-9.6% | $33.1M-8.6% | $33.2M-4.0% | $34.1M+6.9% | $34.3M+4.6% | $36.2M+11.4% | $34.6M+10.2% |
| Income Tax | -$10.5M-138.6% | -$53.6M-3928.6% | $3.6M-51.4% | -$13.5M-179.4% | -$4.4M-215.8% | $1.4M-92.0% | $7.4M-75.5% | $17.0M-55.7% |
| Net Income | -$47.4M+29.0% | -$303.6M-2964.2% | -$15.8M-157.0% | -$79.3M-215.4% | -$66.8M-1857.9% | $10.6M-89.7% | $27.7M-81.7% | $68.7M-48.8% |
| EPS (Basic) | -$0.83+29.1% | -$5.34-2910.5% | -$0.28-157.1% | -$1.39-214.9% | -$1.17-1771.4% | $0.19-89.6% | $0.49-81.6% | $1.21-48.5% |
| EPS (Diluted) | -$0.83+29.1% | -$5.34-2910.5% | -$0.28-157.1% | -$1.39-214.9% | -$1.17-1771.4% | $0.19-89.5% | $0.49-81.3% | $1.21-47.8% |
| Diluted Shares (Avg) | 57M+0.9% | N/A | 57M+0.7% | 57M+0.2% | 57M-0.5% | N/A | 57M-2.2% | 57M-1.6% |
PII Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q | Q2'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $5.2B-3.8% | $4.9B-11.4% | $5.3B-5.8% | $5.4B-5.6% | $5.5B-2.1% | $5.5B+0.2% | $5.6B-1.8% | $5.7B+4.4% |
| Current Assets | $2.6B-0.1% | $2.2B-16.2% | $2.6B-4.6% | $2.6B-6.7% | $2.6B-5.1% | $2.6B-2.2% | $2.7B-10.4% | $2.8B-3.1% |
| Cash & Equivalents | $282.0M-3.3% | $138.0M-52.1% | $335.5M+15.2% | $324.3M+0.5% | $291.7M-8.5% | $287.8M-21.8% | $291.3M-1.4% | $322.7M-5.2% |
| Short-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Inventory | $1.6B-10.3% | $1.4B-18.9% | $1.7B-15.1% | $1.7B-15.1% | $1.7B-10.5% | $1.7B-3.8% | $2.0B-2.6% | $2.0B-1.2% |
| Accounts Receivable | $249.0M+17.8% | $237.5M+23.5% | $230.3M+3.0% | $225.2M-11.7% | $211.3M-16.8% | $192.3M-37.2% | $223.7M-53.2% | $254.9M-13.0% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $348.8M-12.0% | $348.8M-11.4% | $348.6M-12.7% | $348.6M-11.9% | $396.3M+1.0% | $393.5M-0.2% | $399.1M+2.5% | $395.7M+2.1% |
| Total Liabilities | $4.5B+6.3% | $4.1B-4.0% | $4.1B-3.0% | $4.2B-3.7% | $4.2B+1.0% | $4.2B+3.4% | $4.3B-2.5% | $4.4B+3.6% |
| Current Liabilities | $2.1B-7.7% | $2.2B-2.2% | $2.5B+13.1% | $2.5B+26.8% | $2.3B+24.2% | $2.3B+18.6% | $2.3B-7.6% | $2.0B-18.2% |
| Non-Current Liabilities | $2.3B+23.3% | $1.8B-6.2% | $1.6B-21.0% | $1.7B-29.0% | $1.9B-17.8% | $1.9B-10.2% | $2.0B+3.8% | $2.4B+33.1% |
| Long-Term Debt | $2.1B+26.8% | $1.5B-8.1% | $1.3B-24.7% | $1.4B-33.4% | $1.6B-19.5% | $1.6B-11.7% | $1.7B+4.2% | $2.1B+38.6% |
| Total Equity | $750.4M-38.8% | $828.4M-35.8% | $1.1B-14.3% | $1.2B-11.4% | $1.2B-11.0% | $1.3B-9.1% | $1.3B+0.7% | $1.3B+7.3% |
| Retained Earnings | -$560.3M-1339.6% | -$469.0M-415.0% | -$127.3M-173.6% | -$71.7M-139.3% | $45.2M-77.1% | $148.9M-38.9% | $173.0M-9.3% | $182.6M+49.5% |
PII Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q | Q2'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$320.2M-484.9% | $178.7M-13.4% | $158.8M+656.2% | $320.3M+118.9% | $83.2M+178.9% | $206.3M-62.5% | $21.0M-25.3% | $146.3M-34.6% |
| Depreciation & Amortization | $63.2M-13.9% | $67.6M-15.0% | $72.6M-2.4% | $72.9M+4.9% | $73.4M+16.7% | $79.5M+10.4% | $74.4M+12.0% | $69.5M+18.4% |
| Stock-Based Compensation | $20.7M+64.3% | N/A | $14.6M+87.2% | $17.0M+66.7% | $12.6M+0.8% | N/A | $7.8M-21.2% | $10.2M-18.4% |
| Capital Expenditures | $29.7M-16.6% | $64.7M-6.2% | $42.1M-21.2% | $40.5M-39.7% | $35.6M-50.6% | $69.0M-31.6% | $53.4M-49.4% | $67.2M-39.9% |
| Free Cash Flow | -$349.9M-835.1% | $114.0M-17.0% | $116.7M+460.2% | $279.8M+253.7% | $47.6M+126.8% | $137.3M-69.4% | -$32.4M+58.1% | $79.1M-29.3% |
| Investing Cash Flow | -$121.6M-329.7% | -$62.7M-19.0% | -$17.1M+67.4% | -$31.4M+71.2% | -$28.3M+50.1% | -$52.7M+54.6% | -$52.4M+66.4% | -$109.1M-8.0% |
| Financing Cash Flow | $506.6M+990.3% | -$233.8M-64.6% | -$130.3M-2732.6% | -$272.0M-861.1% | -$56.9M-149.2% | -$142.0M+61.6% | -$4.6M-105.2% | -$28.3M+73.9% |
| Dividends Paid | $38.7M+3.2% | $37.3M+0.8% | $37.9M+3.6% | $37.6M+2.2% | $37.5M+0.5% | $37.0M+0.8% | $36.6M-0.3% | $36.8M-0.3% |
| Share Buybacks | $9.2M+283.3% | $0-100.0% | $0 | $0-100.0% | $2.4M-85.0% | $400K-97.9% | $0-100.0% | $66.3M+73.1% |
PII Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q | Q2'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 20.2%+4.2pp | 20.0%-0.4pp | 20.6%+0.1pp | 19.4%-2.2pp | 16.0%-3.1pp | 20.4%-0.4pp | 20.6%-2.0pp | 21.6%-1.2pp |
| Operating Margin | -2.4%0.0pp | -16.7%-20.4pp | 1.1%-2.7pp | -0.7%-6.8pp | -2.4%-4.6pp | 3.8%-2.5pp | 3.8%-5.1pp | 6.1%-2.7pp |
| Net Margin | -2.9%+1.5pp | -15.8%-16.4pp | -0.9%-2.5pp | -4.3%-7.8pp | -4.3%-4.6pp | 0.6%-3.9pp | 1.6%-5.1pp | 3.5%-2.6pp |
| Return on Equity | -6.3%-0.9pp | -36.6%-37.5pp | -1.4%-3.4pp | -6.7%-11.8pp | -5.5%-5.7pp | 0.8%-6.5pp | 2.1%-9.3pp | 5.1%-5.6pp |
| Return on Assets | -0.9%+0.3pp | -6.2%-6.4pp | -0.3%-0.8pp | -1.5%-2.7pp | -1.2%-1.3pp | 0.2%-1.7pp | 0.5%-2.2pp | 1.2%-1.3pp |
| Current Ratio | 1.21+0.1x | 0.98-0.2x | 1.02-0.2x | 1.04-0.4x | 1.12-0.3x | 1.15-0.2x | 1.210.0x | 1.42+0.2x |
| Debt-to-Equity | 2.74+1.4x | 1.82+0.5x | 1.13-0.2x | 1.17-0.4x | 1.32-0.1x | 1.270.0x | 1.290.0x | 1.56+0.4x |
| Asset Turnover | 0.320.0x | 0.39+0.1x | 0.350.0x | 0.340.0x | 0.280.0x | 0.32-0.1x | 0.31-0.1x | 0.34-0.1x |
| FCF Margin | -21.1%-24.2pp | 5.9%-1.9pp | 6.3%+8.2pp | 15.1%+11.1pp | 3.1%+13.3pp | 7.8%-11.8pp | -1.9%+1.6pp | 4.0%-1.0pp |
Note: The current ratio is below 1.0 (0.98), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Polaris Inc. PII | FY2025 | $7.2B | -$465.5M | -6.5% | $3.0B | 29/100 |
| Brunswick Corporation BC | FY2025 | $5.4B | -$137.3M | -2.6% | $4.2B | 34/100 |
| Harley-Davidson, Inc. HOG | FY2025 | $4.5B | $338.7M | 7.6% | $2.8B | 61/100 |
| LCI Industries LCII | FY2025 | $4.1B | $188.3M | 4.6% | $2.0B | 56/100 |
| Thor Industries, Inc. THO | FY2026 | $9.6B | $177.5M | 1.8% | $3.5B | 32/100 |
Where Polaris Inc. Ranks
Frequently Asked Questions
What is Polaris Inc.'s annual revenue?
Polaris Inc. (PII) reported $7.2B in total revenue for fiscal year 2025. This represents a -0.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Polaris Inc.'s revenue growing?
Polaris Inc. (PII) revenue declined by 0.3% year-over-year, from $7.2B to $7.2B in fiscal year 2025.
Is Polaris Inc. profitable?
No, Polaris Inc. (PII) reported a net income of -$465.5M in fiscal year 2025, with a net profit margin of -6.5%.
What is Polaris Inc.'s EBITDA?
Polaris Inc. (PII) had EBITDA of -$62.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Polaris Inc. have?
As of fiscal year 2025, Polaris Inc. (PII) had $138.0M in cash and equivalents against $1.5B in long-term debt.
What is Polaris Inc.'s gross margin?
Polaris Inc. (PII) had a gross margin of 19.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Polaris Inc.'s operating margin?
Polaris Inc. (PII) had an operating margin of -4.9% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Polaris Inc.'s net profit margin?
Polaris Inc. (PII) had a net profit margin of -6.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Polaris Inc. pay dividends?
Yes, Polaris Inc. (PII) paid $2.68 per share in dividends during fiscal year 2025.
What is Polaris Inc.'s return on equity (ROE)?
Polaris Inc. (PII) has a return on equity of -56.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Polaris Inc.'s free cash flow?
Polaris Inc. (PII) generated $558.1M in free cash flow during fiscal year 2025. This represents a 8486.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Polaris Inc.'s operating cash flow?
Polaris Inc. (PII) generated $741.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Polaris Inc.'s total assets?
Polaris Inc. (PII) had $4.9B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Polaris Inc.'s capital expenditures?
Polaris Inc. (PII) invested $182.9M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Polaris Inc. spend on research and development?
Polaris Inc. (PII) invested $371.9M in research and development during fiscal year 2025.
What is Polaris Inc.'s current ratio?
Polaris Inc. (PII) had a current ratio of 0.98 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Polaris Inc.'s debt-to-equity ratio?
Polaris Inc. (PII) had a debt-to-equity ratio of 1.82 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Polaris Inc.'s return on assets (ROA)?
Polaris Inc. (PII) had a return on assets of -9.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Polaris Inc.'s P/E ratio?
Polaris Inc. (PII) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to March 31, 2026). The market capitalization is $3.0B as of Oct 7, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Polaris Inc.'s price-to-sales ratio?
Polaris Inc. (PII) trades at 0.4x sales, its market capitalization divided by revenue of $7.3B revenue, trailing 12 months to March 31, 2026. The market capitalization is $3.0B as of Oct 7, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Polaris Inc.'s Altman Z-Score?
Polaris Inc. (PII) has an Altman Z-Score of 1.53, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Polaris Inc.'s Piotroski F-Score?
Polaris Inc. (PII) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Polaris Inc.'s earnings high quality?
Polaris Inc. (PII) reported a net loss of $465.5M while generating $741.0M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Polaris Inc. cover its interest payments?
Polaris Inc. (PII) reported an operating loss of $348.7M against $131.4M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Polaris Inc.?
Polaris Inc. (PII) scores 29 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.