MarineMax Inc (HZO)
Cash conversion cycle
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 190.61 | 171.87 | 182.72 |
| Days of sales outstanding (DSO) | days | 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 | 12.92 | 14.48 | 13.67 |
| Number of days of payables | days | 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 | 13.44 | 12.49 | 4.67 |
| Cash conversion cycle | days | 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 | 190.09 | 173.86 | 191.72 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 201.13 + 14.30 – 10.09
= 205.34
The cash conversion cycle of Marinemax, Inc. has shown some fluctuations over the past eight quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle indicates that the company is taking longer to sell its inventory and collect cash from its customers.
In the most recent quarter, the cash conversion cycle has increased to 205.34 days, up from 186.55 days in the previous quarter. This suggests that Marinemax, Inc. is taking longer to convert its investments into cash, which may indicate inventory management or collection issues.
Looking back at the trend over the past two years, there has been a general increasing trend in the cash conversion cycle, with significant fluctuations. This may indicate that the company has experienced challenges in managing its inventory and cash collection processes.
It would be important for Marinemax, Inc. to closely examine its inventory management and collection processes to identify areas for improvement in order to shorten the cash conversion cycle and improve its cash flow efficiency.
Peer comparison
Dec 31, 2023