MarineMax Inc (HZO)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,394,710 | 2,308,100 | 2,063,260 | 1,509,710 | 1,237,150 |
| Property, plant and equipment | US$ in thousands | 527,552 | 246,011 | 175,463 | 141,934 | 144,298 |
| Fixed asset turnover | 4.54 | 9.38 | 11.76 | 10.64 | 8.57 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,394,710K ÷ $527,552K
= 4.54
The fixed asset turnover ratio is a measure of how efficiently a company is using its fixed assets to generate sales. It is calculated by dividing net sales by average fixed assets.
MarineMax, Inc.'s fixed asset turnover ratio has fluctuated over the past five years, as indicated by the following data:
- Sep 30, 2023: 4.54
- Sep 30, 2022: 9.38
- Sep 30, 2021: 11.76
- Sep 30, 2020: 10.64
- Sep 30, 2019: 8.57
A higher fixed asset turnover ratio generally indicates better utilization of fixed assets in generating sales, whereas a lower ratio may suggest underutilization or inefficiency.
The significant decrease in the fixed asset turnover ratio from 2021 to 2023 raises concerns about the company's ability to efficiently generate sales from its fixed assets. This may be attributed to various factors such as increased investment in fixed assets without a proportional increase in sales, operational inefficiencies, or changes in the nature of the business.
It is important to delve deeper into the reasons behind this decline in the fixed asset turnover ratio to assess the impact on the company's overall operational and financial performance. Furthermore, comparison with industry benchmarks and peer companies can provide additional insights into MarineMax's competitive position and operational efficiency.
Peer comparison
Sep 30, 2023