MarineMax Inc (HZO)

Short-term

Turnover ratios

Marinemax, Inc.'s activity ratios provide valuable insight into the efficiency of the company's operations and management of its working capital. The inventory turnover ratio, which measures how effectively the company is managing its inventory, has decreased from 6.08 in 2021 to 1.92 in 2023. This indicates a decrease in the number of times the inventory is sold and replaced during the year, potentially signaling inefficiencies in inventory management.

Conversely, the receivables turnover ratio, which assesses the efficiency of the company's credit policies and collection efforts, has shown consistent improvement over the years, increasing from 29.18 in 2019 to 27.92 in 2023. This implies that MarineMax has been successful in collecting its accounts receivable more rapidly over time.

The payables turnover ratio, reflecting how efficiently the company pays its suppliers, has also shown a declining trend, falling from 54.54 in 2021 to 21.75 in 2023. This may suggest a lengthening of the company's payment period to suppliers, potentially signaling strained relationships or cash flow challenges.

Additionally, the working capital turnover ratio, which measures the efficiency of the company's use of working capital to generate sales, has exhibited a fluctuating pattern over the years, with a notable increase to 8.67 in 2023. This could indicate an improvement in the company's ability to generate sales from its working capital.

In summary, while MarineMax, Inc. has shown varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the years, these activity ratios collectively reflect the company's evolving operational and financial management strategies.

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Average number of days

Marinemax, Inc.'s activity ratios provide insights into the efficiency of its inventory management, accounts receivable collection, and accounts payable payment.

The days of inventory on hand (DOH) has substantially increased from 60 days in 2021 to 190 days in 2023, indicating a significant increase in the average time it takes for the company to sell its inventory. This may imply overstocking or slower inventory turnover, which could tie up working capital and increase carrying costs.

Conversely, the days of sales outstanding (DSO) have increased from 8.43 days in 2021 to 13.07 days in 2023, signifying a lengthening in the average collection period for accounts receivable. This may suggest potential challenges in collecting cash from customers, impacting the company's cash flow and liquidity.

Moreover, the number of days of payables has risen from 6.69 days in 2021 to 16.78 days in 2023, indicating an increase in the average time it takes for Marinemax, Inc. to pay its suppliers. This extension may reflect efforts to manage working capital, but it could also strain relationships with suppliers if not managed effectively.

Overall, the trend in these activity ratios suggests potential challenges in managing inventory, accounts receivable, and accounts payable, which could affect Marinemax, Inc.'s liquidity and operational efficiency. Further analysis and management attention may be necessary to address these concerns and optimize working capital management.

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Long-term

MarineMax, Inc.'s long-term activity ratios, as reflected by the fixed asset turnover and total asset turnover, provide insights into the company's efficiency in utilizing its long-term assets to generate sales.

The fixed asset turnover ratio measures the company's ability to generate sales from its investment in fixed assets. From 2019 to 2023, MarineMax's fixed asset turnover ratio has fluctuated, with a noticeable decrease from 11.76 in 2021 to 4.54 in 2023. This suggests a decline in the company's ability to generate sales from its fixed assets over this period. It may indicate that the company's investment in fixed assets did not contribute as significantly to its sales in 2023 compared to previous years.

Furthermore, the total asset turnover ratio reveals the company's efficiency in utilizing all assets, both current and fixed, to generate sales. MarineMax's total asset turnover ratio also experienced fluctuations, declining from 1.58 in 2019 to 0.99 in 2023. This decrease suggests that the company's overall efficiency in generating sales from its total assets has declined over the period, indicating a potential decrease in the company's sales relative to its total asset base.

Overall, the declining trend in both the fixed asset turnover and total asset turnover ratios may signal potential issues with the company's asset utilization and sales generation, highlighting the importance of further analysis into the reasons behind these declines and potential strategies for improvement.