In the Polaris Industries Inc., the current ratio is 1.4. On the contrary, the 2 is the industrial average acceptable current ratio. Such a current ratio reflects the fact that a company has a dynamic and comfortable positioning in finances. However, a company with a current ratio that is less than one is assumed to have difficulty while meeting the available obligations. Besides that, the firms that have a current ratio of less than one have high operating flow of cash. In the Polaris Industries Inc. Corporation, the current ratio values reflect the strong operating cash flow in the firm and the ability of maintaining their obligations.
The inventory turnover of the Polaris Industries Inc. reflects the success of the firm. The inventory turnover shows that the corporation is among the best firms. As a result, it is involved in competition practices with other companies. The industrial average is inventory turnover is 5. Companies with an inventory turnover ratio of between 4 and 6 are considered to have the greatest revenue as opposed to that of their industrial competitors.
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Inventory Turn Over = cost of goods sold / inventory
Evidently, the Polaris Industries Inc. has a low debt ratio. The debt ratio of the firm is approximately 0.6. Companies with a debt ratio of less than one are highly competitive and have a higher survival rate in the market industries as well. The debt ratio of the Polaris Industries Inc. reflects the way in which the firm is stable in its finances. Lastly, the time earned interest of the firm is 60.9 approximately. Thus, this shows that the company has the hardworking workers who would work for overtime but accomplish a desired objective. The time earned interest in the Polaris Industries Inc. is relatively high showing the fact that the firm is highly competitive.
