MarineMax Inc (HZO)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 201,456 | 228,274 | 222,192 | 155,493 | 38,511 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 87,253 | 51,533 | 49,005 | 41,526 | 43,801 |
| Total current liabilities | US$ in thousands | 847,049 | 412,772 | 251,093 | 272,534 | 412,893 |
| Quick ratio | 0.34 | 0.68 | 1.08 | 0.72 | 0.20 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($201,456K
+ $—K
+ $87,253K)
÷ $847,049K
= 0.34
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities using its most liquid assets. A quick ratio of 1.0 or higher is generally considered healthy as it indicates that the company can fully cover its short-term obligations without relying on the sale of inventory.
Marinemax, Inc.'s quick ratio has fluctuated over the past five years, with a downward trend from 2021 to 2023. In 2023, the quick ratio stood at 0.37, indicating a considerable decrease from the previous year. This may be a cause for concern as it suggests a weakened ability to meet short-term obligations without relying on the sale of inventory.
Looking back, the company exhibited a relatively strong quick ratio of 1.14 in 2021, which likely provided a sense of financial stability at that time. However, the sharp drop in 2023 raises questions about its current liquidity position. It's important for stakeholders to consider the company's inventory management and collection of receivables to gain a comprehensive understanding of this significant decrease in the quick ratio.
In conclusion, Marinemax, Inc.'s declining quick ratio over the past few years, with a substantial drop in 2023, suggests potential challenges in meeting short-term obligations using its most liquid assets. This may indicate an increased reliance on inventory or a slowdown in the collection of receivables, warranting further investigation into the company's liquidity management and financial health.
Peer comparison
Sep 30, 2023