MarineMax Inc (HZO)

Days of sales outstanding (DSO) is a financial ratio that measures the average number of days a company takes to collect revenue after a sale is made. It provides insight into how efficiently a company manages its accounts receivable.

Analyzing Marinemax, Inc.'s DSO over the past five years, we observe a fluctuating trend. In 2019, the DSO was relatively high at 12.51 days, indicating that Marinemax took an average of 12.51 days to collect its sales revenue. This suggests a relatively slower collection process, which can tie up cash and affect liquidity.

In 2020, there was a decrease in DSO to 9.72 days, indicating an improvement in the collection of accounts receivable. This could suggest enhanced efficiency in collecting sales revenue, potentially freeing up cash and enhancing liquidity.

The trend continued in 2021, with the DSO decreasing further to 8.43 days, indicating a continued improvement in the collection of receivables. This suggests that the company has been successful in managing its accounts receivable and collecting sales revenue more swiftly, leading to improved liquidity.

However, in 2022, there was a significant increase in DSO to 7.95 days, indicating a slight deterioration in the collection of receivables compared to the previous year. This could potentially signal a slowdown in the collection process, affecting liquidity and cash flow management.

The most recent data for 2023 shows a notable increase in DSO to 13.07 days, surpassing the levels observed in 2019. This suggests a significant slowdown in the collection of sales revenue, which could potentially impact the company's cash flow and liquidity position.

Overall, the fluctuating trend in Marinemax's DSO indicates varying efficiency in collecting accounts receivable over the years. The recent increase in DSO in 2023 is a noteworthy concern and may require further investigation into the company's credit and collection policies, as well as its overall receivables management.

Peer comparison

Sep 30, 2023