MarineMax Inc (HZO)
Total 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 |
| Total assets | US$ in thousands | 2,421,300 | 1,352,770 | 1,007,820 | 775,319 | 784,083 |
| Total asset turnover | 0.99 | 1.71 | 2.05 | 1.95 | 1.58 |
September 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,394,710K ÷ $2,421,300K
= 0.99
The total asset turnover ratio measures a company's ability to generate sales from its assets. A higher ratio indicates that the company is using its assets more efficiently to generate revenue.
Looking at Marinemax, Inc.'s total asset turnover over the past five years, we can see a declining trend. In 2019, the ratio was 1.58, indicating that the company generated $1.58 in sales for every dollar of assets. This increased to 1.95 in 2020, showing improved efficiency in asset utilization. However, there was a decline to 2.05 in 2021, suggesting a significant improvement in the utilization of assets to generate sales.
The most recent data for 2023 indicates a sharp decline to 0.99, indicating that the company's ability to generate sales from its assets has decreased significantly. This decline could be a result of various factors, such as a decrease in sales relative to the size of the asset base, an increase in total assets without a proportional increase in sales, or inefficiencies in asset utilization.
It's essential to further evaluate the reasons behind this decline in total asset turnover to determine if it is due to internal operational challenges, changes in the company's business model, or external economic factors. This will help in understanding the implications for the company's financial performance and future strategic decisions.
In conclusion, Marinemax, Inc.'s total asset turnover has shown a declining trend over the past five years, with a significant decrease in 2023. This warrants a closer examination to identify the underlying causes and the potential impact on the company's overall financial performance.
Peer comparison
Sep 30, 2023