MarineMax Inc (HZO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.19 | 1.20 | 1.24 | 1.28 | 1.33 | 1.32 | 1.30 | 1.35 | 1.83 | 1.78 | 1.70 | 1.57 | 2.06 | 2.20 | 2.14 | 1.74 | 1.85 | 1.77 | 1.38 | 1.39 |
| Quick ratio | 0.31 | 0.33 | 0.32 | 0.32 | 0.34 | 0.39 | 0.39 | 0.38 | 0.68 | 0.83 | 0.76 | 0.67 | 1.08 | 1.17 | 0.82 | 0.51 | 0.72 | 0.58 | 0.22 | 0.17 |
| Cash ratio | 0.21 | 0.23 | 0.21 | 0.22 | 0.24 | 0.28 | 0.25 | 0.27 | 0.55 | 0.68 | 0.59 | 0.57 | 0.88 | 0.90 | 0.59 | 0.38 | 0.57 | 0.32 | 0.14 | 0.09 |
MarineMax Inc's liquidity ratios have shown some fluctuations over the past few quarters. The current ratio, which measures the company's ability to pay off its short-term liabilities with its current assets, has gradually decreased from 2.06 in September 2021 to 1.19 in September 2024. This downward trend indicates a potential strain on the company's liquidity position.
The quick ratio, a more conservative measure of liquidity that excludes inventory from current assets, has also displayed a decreasing pattern from 1.08 in March 2021 to 0.31 in September 2024. This downward trend suggests that MarineMax may have difficulty meeting its short-term obligations without relying on inventory liquidation.
Furthermore, the cash ratio, which represents the proportion of current liabilities that can be covered by cash and cash equivalents, has shown a similar downward trajectory from 0.88 in March 2021 to 0.21 in September 2024. This implies that the company's cash reserves may be declining relative to its current liabilities.
Overall, based on these liquidity ratios, MarineMax Inc's ability to meet its short-term financial obligations may be weakening, indicating a potential need for improved cash management or additional sources of liquidity to enhance its financial health.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of MarineMax Inc has shown some fluctuations over the past few quarters. It measures the time it takes for a company to convert its investments in inventory and other resources back into cash.
In the latest period, ending on September 30, 2024, the cash conversion cycle was 207.17 days, indicating that, on average, it takes the company this duration to convert its resources into cash.
Comparing this to previous periods, there appears to be a general trend of an increasing cash conversion cycle over the past few quarters. This could suggest that MarineMax Inc is taking longer to sell its inventory, collect receivables, and convert them into cash compared to previous periods.
A longer cash conversion cycle could indicate inefficiencies in inventory management or difficulties in collecting receivables promptly, which may tie up cash and impact overall liquidity and financial performance.
It would be crucial for MarineMax Inc to analyze the reasons behind the increasing trend in the cash conversion cycle and take appropriate measures to streamline its operations and improve cash flow efficiency.