MarineMax Inc (HZO)

Short-term

Turnover ratios

MarineMax Inc's activity ratios provide insights into the efficiency of the company's operations and management of its assets and liabilities over the past five years.

1. Inventory Turnover:
The inventory turnover ratio indicates how effectively the company is managing its inventory. A lower ratio suggests slower inventory turnover. MarineMax's inventory turnover has gradually declined from 6.08 in 2021 to 1.80 in 2024, reflecting a decrease in the efficiency of inventory management.

2. Receivables Turnover:
The receivables turnover ratio measures how quickly the company collects cash from its credit sales. MarineMax's receivables turnover has fluctuated over the years but generally remains high, indicating efficient collection of receivables. The ratio peaked at 44.79 in 2022, suggesting a rapid collection of outstanding receivables.

3. Payables Turnover:
The payables turnover ratio evaluates how well the company manages its trade credit from suppliers. MarineMax's payables turnover has varied significantly, with a notable increase from 21.75 in 2023 to 29.92 in 2024. A higher turnover ratio implies that the company is paying off its payables more quickly.

4. Working Capital Turnover:
The working capital turnover ratio demonstrates how efficiently the company generates sales revenue relative to its working capital. MarineMax's working capital turnover has shown an overall increasing trend, indicating improved efficiency in utilizing its working capital to generate sales revenue.

In summary, the analysis of MarineMax Inc's activity ratios suggests fluctuations in the efficiency of managing inventory, collecting receivables, paying off payables, and utilizing working capital over the years. Further examination and comparison with industry benchmarks could provide deeper insights into the company's operational performance and financial health.

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Average number of days

MarineMax Inc's activity ratios provide insight into how efficiently the company manages its assets and liabilities.

1. Days of Inventory on Hand (DOH):
- DOH has increased over the years, indicating that inventory turnover has slowed down. In 2024, the company held inventory for an average of 203.04 days, a significant increase from 97.90 days in 2020. This suggests that the company may be overstocked or facing challenges in selling products quickly.

2. Days of Sales Outstanding (DSO):
- DSO measures how quickly the company collects payments from customers. The decreasing trend in DSO from 2020 to 2022 indicates an improvement in the collection process. However, in 2024, DSO increased to 16.33 days, which might suggest a delay in collecting payments from customers compared to previous years.

3. Number of Days of Payables:
- The number of days of payables reflects how long it takes for the company to pay its suppliers. The fluctuating trend in the payables period shows inconsistency in managing supplier payments. In 2024, the days of payables were at 12.20 days, a decrease from the previous year but higher than 2020 and 2021, indicating potential changes in the company's payment practices.

Overall, MarineMax Inc needs to focus on improving its inventory turnover, managing receivables efficiently, and maintaining a consistent approach to supplier payments to enhance its operational efficiency and liquidity.

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Long-term

MarineMax Inc's long-term activity ratios provide insights into the efficiency with which the company utilizes its fixed assets and total assets to generate sales over the years.

The fixed asset turnover ratio has shown some fluctuations over the past five years, ranging from a low of 4.54 in 2023 to a high of 11.76 in 2021. This ratio measures how effectively the company generates sales from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate revenue. MarineMax Inc's fixed asset turnover ratios have generally been high, suggesting efficient use of its fixed assets in generating sales.

On the other hand, the total asset turnover ratio has also displayed fluctuations, with a downward trend observed from 2.05 in 2021 to 0.93 in 2024. This ratio evaluates how efficiently the company generates sales from its total assets. A higher total asset turnover ratio implies more efficient utilization of assets to generate revenue. The decrease in the total asset turnover ratio may indicate a decrease in sales generated per dollar of total assets over the years.

In summary, while MarineMax Inc has shown efficient utilization of fixed assets over the years, the trend in the total asset turnover ratio suggests a potential decrease in the efficiency of generating sales from its total assets, which may warrant further investigation into the company's asset management strategies.