MarineMax Inc (HZO)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,559,380 | 1,502,340 | 1,403,820 | 1,111,000 | 914,321 |
| Payables | US$ in thousands | 71,706 | 34,342 | 25,739 | 37,343 | 33,674 |
| Payables turnover | 21.75 | 43.75 | 54.54 | 29.75 | 27.15 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,559,380K ÷ $71,706K
= 21.75
The payables turnover ratio measures how effectively a company manages its accounts payable by comparing the cost of goods sold to the average accounts payable during a specific period. A higher payables turnover ratio generally indicates that the company is paying off its suppliers more quickly.
Analyzing Marinemax, Inc.'s payables turnover ratio from 2019 to 2023, we observe a fluctuating trend. In 2019, the ratio was 27.15, indicating that the company paid off its accounts payable approximately 27 times during the year. However, in 2020, the payables turnover ratio dipped to 29.75 before increasing to 54.54 in 2021, signaling a significant improvement in the management of accounts payable. This high ratio suggests the company was paying its suppliers more frequently or efficiently in 2021.
The ratio then decreased to 43.75 in 2022 and further to 21.75 in 2023. This decline may raise concerns about the company's ability to manage its accounts payable effectively. A lower payables turnover ratio could imply that the company is taking longer to pay its suppliers, potentially affecting its relationships with them.
It's important to note that a low or decreasing payables turnover ratio may also indicate cash flow issues or strained supplier relationships. Therefore, further investigation into the reasons behind the decline in the payables turnover ratio is warranted to evaluate the company's financial health and its relationships with suppliers.
Peer comparison
Sep 30, 2023