MarineMax Inc (HZO)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,431,010 | 2,394,710 | 2,308,100 | 2,063,260 | 1,509,710 |
| Total current assets | US$ in thousands | 1,273,210 | 1,123,180 | 753,997 | 517,519 | 503,327 |
| Total current liabilities | US$ in thousands | 1,069,140 | 847,049 | 412,772 | 251,093 | 272,534 |
| Working capital turnover | 11.91 | 8.67 | 6.76 | 7.74 | 6.54 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,431,010K ÷ ($1,273,210K – $1,069,140K)
= 11.91
MarineMax Inc's working capital turnover has shown a consistent increasing trend over the past five years, indicating an improvement in the efficiency of the company's working capital management. The ratio has increased from 6.54 in 2020 to 11.91 in 2024, suggesting that the company is generating more revenue relative to its working capital investment.
A higher working capital turnover ratio reflects that the company is effectively utilizing its current assets to generate sales. This improvement could be attributed to more efficient inventory management, faster collection of accounts receivable, or better payment terms with suppliers.
A higher working capital turnover ratio may indicate superior operational efficiency and liquidity management. However, it is essential for the company to maintain a balance between maximizing turnover and ensuring that it has sufficient working capital to meet its short-term obligations. Overall, the increasing trend in MarineMax Inc's working capital turnover ratio signifies positive operational performance and effective utilization of resources.
Peer comparison
Sep 30, 2024