MarineMax Inc (HZO)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.14 | 0.16 | 0.03 | 0.05 | 0.01 |
| Debt-to-capital ratio | 0.27 | 0.30 | 0.05 | 0.07 | 0.02 |
| Debt-to-equity ratio | 0.36 | 0.42 | 0.06 | 0.08 | 0.02 |
| Financial leverage ratio | 2.67 | 2.64 | 1.73 | 1.69 | 1.70 |
MarineMax Inc's solvency ratios provide insights into its ability to meet its long-term financial obligations and withstand financial stress.
The trend in the debt-to-assets ratio shows the proportion of the company's assets funded by debt. MarineMax has consistently maintained a relatively low debt-to-assets ratio, indicating a prudent approach to financing its operations. The ratio decreased from 0.16 in 2023 to 0.14 in 2024, suggesting improved asset coverage by equity.
The debt-to-capital ratio reflects the extent of financial leverage used by the company. MarineMax's debt-to-capital ratio has been declining over the years, indicating a lower reliance on debt to finance its operations. The downward trend from 0.30 in 2023 to 0.27 in 2024 reflects a decreasing proportion of debt in the capital structure.
The debt-to-equity ratio highlights the balance between debt and equity financing. MarineMax has shown a consistent decrease in its debt-to-equity ratio over the years, indicating a strengthening financial position with a decreasing reliance on debt. The decline from 0.42 in 2023 to 0.36 in 2024 suggests an increasing proportion of equity in the company's capital structure.
The financial leverage ratio measures the relationship between the company's total assets and equity. MarineMax's financial leverage ratio has fluctuated slightly but has remained relatively stable over the years. The ratio increased from 2.64 in 2023 to 2.67 in 2024, indicating a slight increase in leverage.
Overall, MarineMax Inc's solvency ratios demonstrate a conservative financial strategy with a decreasing reliance on debt and an increasing proportion of equity in its capital structure. These trends suggest a strong solvency position and ability to meet long-term financial obligations.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.73 | 3.76 | 80.78 | 57.15 | 11.51 |
MarineMax Inc's interest coverage ratio has shown significant fluctuation over the past five years. In 2024, the interest coverage ratio stood at 1.73, indicating that the company's operating income is able to cover its interest expenses 1.73 times. This ratio has decreased from 3.76 in 2023 and 80.78 in 2022, suggesting a declining trend in the company's ability to cover its interest payments from operating earnings.
The sharp decline in the interest coverage ratio from 2022 to 2024 may raise concerns about MarineMax Inc's financial stability and ability to meet its debt obligations. However, it is important to note that the interest coverage ratio of 1.73 in 2024 is still above 1, indicating that the company's earnings are currently sufficient to cover its interest expenses.
Further analysis and monitoring of MarineMax Inc's financial performance and debt management practices are recommended to assess the sustainability of its interest coverage ratio and overall financial health.