MarineMax Inc (HZO)

Short-term

Turnover ratios

The activity ratios for Marinemax, Inc. provide insights into the efficiency with which the company is managing its inventory, receivables, payables, and working capital.

Firstly, the inventory turnover ratio has declined over the previous eight quarters, indicating a decreased ability to sell off inventory, which may suggest potential issues with demand or inventory management.

Conversely, the receivables turnover ratio has fluctuated but generally remained at healthy levels, indicating that the company is efficient in collecting payments from its customers.

The payables turnover ratio has also shown variability but remained at elevated levels, suggesting that the company is effectively managing its payments to suppliers.

Lastly, the working capital turnover ratio has fluctuated, but at an overall level, the company has been efficient in generating sales from its working capital. This may imply effective management of current assets and liabilities.

Overall, while there are some fluctuations, Marinemax, Inc. has generally maintained solid efficiency in managing its working capital, payables, and receivables, despite a decline in inventory turnover.

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Average number of days

Based on the provided data, Marinemax, Inc.'s activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand have been increasing steadily from 82.45 days in March 2022 to 201.13 days in December 2023. This indicates that the company is taking longer to sell its inventory, which may tie up working capital and increase carrying costs.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding fluctuated over the period, with an overall increasing trend from 7.95 days in September 2022 to 14.30 days in December 2023. This suggests that the company is taking longer to collect payment from its customers, which could impact cash flow and liquidity.

3. Number of Days of Payables:
- The number of days of payables has also been fluctuating, with a peak of 16.78 days in September 2023 and a low of 8.34 days in September 2022. The overall trend indicates some volatility in the company's payment periods to its suppliers.

In conclusion, Marinemax, Inc. should closely monitor and manage its activity ratios to ensure efficient management of inventory, timely collection of receivables, and optimization of payment terms with its suppliers to maintain healthy working capital and liquidity.

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Long-term

Marinemax, Inc.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, reveal insights into the company's efficiency in utilizing its assets. The fixed asset turnover has been relatively consistent, hovering around 4.5 in the recent quarters, indicating that the company generates approximately $4.50 in sales for every dollar invested in fixed assets. However, there was a significant decrease in the ratio in the previous year, with values exceeding 9. This may suggest a change in the company's capital expenditure or a shift in its business model.

Meanwhile, the total asset turnover has shown a declining trend, decreasing from 1.83 in the first quarter of 2022 to 0.96 in the fourth quarter of 2023. This indicates that the company's ability to generate sales from its total assets has weakened. The decline in this ratio may suggest inefficiencies in asset utilization or an increase in asset base without a proportional increase in sales. Overall, these long-term activity ratios signify the need for further examination of Marinemax, Inc.'s asset management strategies to optimize its operational efficiency.