MarineMax Inc (HZO)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 203.04 | 190.26 | 110.39 | 60.06 | 97.90 |
| Days of sales outstanding (DSO) | days | 16.33 | 13.30 | 8.15 | 8.67 | 10.04 |
| Number of days of payables | days | 12.20 | 16.78 | 8.34 | 6.69 | 12.27 |
| Cash conversion cycle | days | 207.17 | 186.77 | 110.19 | 62.03 | 95.67 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 203.04 + 16.33 – 12.20
= 207.17
The cash conversion cycle for MarineMax Inc has shown a fluctuating trend over the past five years. In particular, the cycle has increased significantly from 62.03 days in 2021 to 207.17 days in 2024. This suggests that the company is taking longer to convert its investments in inventory and receivables into cash.
The increase in the cash conversion cycle indicates potential issues with inventory management and collection of receivables, which could lead to a strain on the company's liquidity. It is important for MarineMax Inc to address these inefficiencies to improve its cash flow and overall financial performance.
Overall, the trend in the cash conversion cycle for MarineMax Inc reflects changes in the company's working capital management and operational efficiency over the years. Monitoring and managing the cash conversion cycle is crucial for the company to ensure optimal utilization of resources and maintain a healthy financial position.
Peer comparison
Sep 30, 2024