MarineMax Inc (HZO)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.81 | 1.92 | 2.04 | 2.08 | 2.51 | 3.31 | 3.88 | 4.43 | 4.37 | 6.08 | 6.68 | 4.33 | 3.10 | 3.73 | 3.34 | 1.89 | 1.94 | 1.91 | 2.12 | 2.00 | |
| DOH | days | 201.13 | 190.26 | 178.84 | 175.12 | 145.57 | 110.39 | 94.19 | 82.45 | 83.57 | 60.06 | 54.66 | 84.32 | 117.69 | 97.90 | 109.25 | 192.66 | 187.80 | 190.61 | 171.87 | 182.72 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.81
= 201.13
Days of Inventory on Hand (DOH) is a measure of how long on average a company holds its inventory before it is sold. A higher DOH indicates that the company takes longer to sell its inventory, which may lead to higher carrying costs and potential obsolescence.
Analyzing Marinemax, Inc.'s DOH over the past eight quarters shows an increasing trend from 82.45 days in March 2022 to 201.13 days in December 2023. This suggests that the company is taking longer to sell its inventory, which could potentially tie up capital and lead to higher carrying costs.
The substantial increase in DOH from December 2022 to December 2023 is noteworthy, indicating a significant extension in the time it takes to sell inventory. It would be important for stakeholders to understand the reasons behind this trend.
Management may need to closely monitor inventory levels and take steps to address any inefficiencies in the inventory management process. High DOH can also indicate potential issues with demand forecasting, production scheduling, or inadequate sales efforts that affect the timely turnover of inventory. This measure can provide valuable insights into the operational efficiency and financial health of the company.
Peer comparison
Dec 31, 2023