MarineMax Inc (HZO)

Liquidity ratios

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
Current ratio 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 1.38 1.48 1.51
Quick ratio 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 0.20 0.32 0.29
Cash ratio 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 0.09 0.19 0.17

Marinemax, Inc.'s liquidity ratios indicate its ability to meet short-term financial obligations. The current ratio, which measures the company's ability to cover short-term liabilities with short-term assets, has shown a declining trend from 1.35 in December 2022 to 1.28 in December 2023. This may suggest a slight decrease in its ability to meet current obligations using its current assets.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventories from current assets, also exhibits a decreasing trend from 0.41 in December 2022 to 0.35 in December 2023. This trend indicates a potential strain in the company's ability to meet immediate obligations without relying on the sale of inventory.

The cash ratio, representing the proportion of current liabilities covered by cash and cash equivalents, also shows a decline from 0.31 in December 2022 to 0.25 in December 2023, suggesting a reduced capacity to cover short-term liabilities solely with cash on hand.

Overall, the decreasing trends in these liquidity ratios may indicate a potential strain on Marinemax, Inc.'s short-term financial obligations and may warrant further investigation into its cash management and short-term asset utilization.

Additional liquidity measure

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
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

The cash conversion cycle for Marinemax, Inc. has shown some fluctuations over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

In the most recent quarter, the cash conversion cycle increased to 205.34 days, indicating that the company took longer to turn its investments in inventory and other resources into cash compared to the previous quarter. This increase could be a result of longer inventory holding periods, extended credit terms offered to customers, or delayed collection of receivables.

The trend in the cash conversion cycle over the past two years shows some volatility, with a notable increase from 83.26 days to 205.34 days. This suggests that Marinemax, Inc. may be facing challenges in managing its working capital effectively, which could potentially impact its liquidity and overall financial performance.

It is important for the company to closely monitor and manage its inventory levels, accounts receivable, and accounts payable to optimize the cash conversion cycle and improve its overall efficiency in converting resources into cash. Additionally, a longer cash conversion cycle could lead to increased financing costs and reduced liquidity, highlighting the importance of addressing any underlying issues impacting the cycle.