- Tags:
- Show more
- Pages:
- 2
- Words:
- 550
Financial Analysis of the Polaris Industries Inc. Student’s Name Institution Financial Statements Analysis of the Polaris Industries Inc. Introduction Financial statements analyses refer to the reviewing and evaluation of the financial statements of a company with a view of understanding the financial health of the company and hence help in decision making on the management and running of the company. Through conducting a comprehensive financial statements analysis, the viability, profitability and the stability of a company can be assessed. A company may also conduct financial statements analysis to understand its competitors. The Polaris Industries Inc. is an American company based in Minnesota, and its main business activities are the manufacture of snowmobiles, neighborhood electric vehicles, and ATV. The financial statements analysis of this company will be used to determine its market position and creditworthiness. Financial analysis As seen in the analysis of the income statement, both in the vertical and horizontal analysis, a trend can be observed. The sales in the fiscal year 2016 are reduced by an overall 4.3%.This indicates that there is a slump in the economy. This could be due to factors such as increased inflation, development of similar products by competitors or the decline in consumer confidence on the products of the company (Polaris Industries Inc., 2018). The gross profit of the company went down by 17.4%.This is partly due to the decline sales of the company and related factors. Consequently, if operating expenses of the company are not reduced, the company will most likely have a lower net profit in its books of accounts. This is
Leave feedback