MarineMax Inc (HZO)
Working capital 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 current assets | US$ in thousands | 1,123,180 | 753,997 | 517,519 | 503,327 | 568,583 |
| Total current liabilities | US$ in thousands | 847,049 | 412,772 | 251,093 | 272,534 | 412,893 |
| Working capital turnover | 8.67 | 6.76 | 7.74 | 6.54 | 7.95 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,394,710K ÷ ($1,123,180K – $847,049K)
= 8.67
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. It is calculated by dividing net sales by average working capital. A higher ratio indicates better efficiency in utilizing working capital.
Marinemax, Inc.'s working capital turnover has shown fluctuations over the past five years. In 2023, the working capital turnover ratio significantly improved to 8.67, indicating that the company generated $8.67 in sales for every dollar of working capital. This suggests a substantial increase in the efficiency of Marinemax's working capital management compared to the prior year.
In 2022, the ratio was 6.76, representing a decrease from the previous year. The decline in the ratio suggests a reduction in efficiency in utilizing working capital to generate sales.
The ratio of 7.74 in 2021 indicates a slight decrease in efficiency compared to 2020 when the ratio stood at 6.54. However, in 2019, Marinemax experienced a higher working capital turnover ratio of 7.95.
The upward trend from 2020 to 2023 suggests an improvement in the company's working capital management efficiency, although there were fluctuations in between. It's essential for Marinemax to maintain its focus on managing working capital effectively to support its sales growth and overall financial performance.
Peer comparison
Sep 30, 2023