MarineMax Inc (HZO)
Cash conversion cycle
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 190.26 | 110.39 | 60.06 | 97.90 | 190.61 |
| Days of sales outstanding (DSO) | days | 13.30 | 8.15 | 8.67 | 10.04 | 12.92 |
| Number of days of payables | days | 16.78 | 8.34 | 6.69 | 12.27 | 13.44 |
| Cash conversion cycle | days | 186.77 | 110.19 | 62.03 | 95.67 | 190.09 |
September 30, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 190.26 + 13.30 – 16.78
= 186.77
The cash conversion cycle of Marinemax, Inc. has fluctuated over the past five years, indicating potential changes in its operating efficiency and liquidity management. In 2023, the cash conversion cycle increased to 186.55 days from 110.00 days in 2022, reflecting a substantial extension in the time it takes for the company to convert its investments in inventory and other resources into cash from sales. This increase may indicate challenges in managing inventory or collecting receivables efficiently, which could impact the company's overall cash flow and working capital management. Comparatively, the 2021 cash conversion cycle of 61.79 days suggests a significantly more efficient conversion of resources into cash, potentially reflective of a period of strong operational performance and effective working capital management. The analysis of the cash conversion cycle suggests potential areas of improvement in efficiency and liquidity management for Marinemax, Inc.
Peer comparison
Sep 30, 2023