MarineMax Inc (HZO)
Cash conversion cycle
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 203.04 | 194.67 | 211.01 | 201.13 | 190.26 | 178.84 | 175.12 | 145.57 | 110.39 | 94.19 | 82.45 | 83.57 | 60.06 | 54.66 | 84.32 | 117.69 | 97.90 | 109.25 | 192.66 | 187.80 |
| Days of sales outstanding (DSO) | days | 16.33 | 15.60 | 18.30 | 14.30 | 13.30 | 14.84 | 18.52 | 10.67 | 8.15 | 10.11 | 10.28 | 6.78 | 8.67 | 10.99 | 10.86 | 9.93 | 10.04 | 17.87 | 10.02 | 10.15 |
| Number of days of payables | days | 12.20 | 10.08 | 13.88 | 10.09 | 16.78 | 11.42 | 10.98 | 10.43 | 8.34 | 14.23 | 9.47 | 7.00 | 6.69 | 7.50 | 6.48 | 6.95 | 12.27 | 13.72 | 5.80 | 6.90 |
| Cash conversion cycle | days | 207.17 | 200.19 | 215.43 | 205.34 | 186.77 | 182.26 | 182.67 | 145.81 | 110.19 | 90.07 | 83.26 | 83.35 | 62.03 | 58.15 | 88.70 | 120.67 | 95.67 | 113.40 | 196.88 | 191.04 |
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 of MarineMax Inc has shown some variability over the past few quarters. The cycle measures the time it takes for a company to convert its investments in inventory into cash flows from sales.
In the most recent quarter, ending on September 30, 2024, MarineMax's cash conversion cycle was 207.17 days, which indicates that it took the company approximately 207 days to convert its investments in inventory into cash flows from sales. This was an increase compared to the previous quarter, indicating a slower conversion process.
Looking back over the past few quarters, we can observe fluctuations in the cash conversion cycle. The cycle was relatively stable in early 2023 but showed an increasing trend towards the end of 2023 and throughout 2024. This could imply potential challenges in efficiently managing inventory levels, collection of receivables, and payment of payables.
It is important for MarineMax Inc to closely monitor and manage its cash conversion cycle to ensure optimal liquidity and efficient working capital management. Identifying and addressing any underlying causes of the lengthening cycle can help in improving the company's overall financial health and operational efficiency.
Peer comparison
Sep 30, 2024