MarineMax Inc (HZO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 183,532 | 200,622 | 217,323 | 237,896 | 254,163 | 265,169 | 257,957 | 243,578 | 224,665 | 209,469 | 198,514 | 166,266 | 123,112 | 106,731 | 86,557 | 66,639 | 67,149 | 60,532 | 64,902 | 62,758 |
| Long-term debt | US$ in thousands | 380,972 | 389,231 | 399,229 | 407,335 | 415,263 | 45,301 | 45,834 | 45,747 | 46,623 | 47,498 | 48,374 | 49,440 | 50,124 | 7,343 | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 925,098 | 915,843 | 899,809 | 848,626 | 812,220 | 782,666 | 742,740 | 674,260 | 633,352 | 594,892 | 572,771 | 523,304 | 482,582 | 455,397 | 425,025 | 387,077 | 380,747 | 368,819 | 369,786 | 368,489 |
| Return on total capital | 14.05% | 15.37% | 16.73% | 18.94% | 20.71% | 32.03% | 32.71% | 33.83% | 33.04% | 32.61% | 31.96% | 29.03% | 23.11% | 23.07% | 20.37% | 17.22% | 17.64% | 16.41% | 17.55% | 17.03% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $183,532K ÷ ($380,972K + $925,098K)
= 14.05%
Marinemax, Inc.'s return on total capital, a key financial ratio that measures a company's profitability and efficiency in using its capital, has shown a declining trend over the last eight quarters. This ratio indicates the company's ability to generate profits from the total capital employed, including both debt and equity.
The return on total capital decreased from 31.13% in March 2022 to 9.14% in December 2023, reflecting a significant decline in the company's ability to generate profits relative to its total capital. This suggests that the company may be facing challenges in effectively utilizing its capital to generate returns for its investors and creditors.
The decreasing trend in return on total capital may raise concerns about the company's financial management and operational efficiency. It is important for investors and stakeholders to closely monitor Marinemax, Inc.'s capital utilization and profitability to assess the company's long-term financial sustainability and growth prospects.
Peer comparison
Dec 31, 2023