MarineMax Inc (HZO)

The solvency ratios of Marinemax, Inc. provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown an increasing trend over the past five years, rising from 0.07 in 2021 to 0.40 in 2023. This indicates that the company has increased its reliance on debt to finance its assets. The debt-to-capital ratio has followed a similar trend, increasing from 0.11 in 2021 to 0.51 in 2023, reflecting a higher proportion of debt in the company's capital structure.

The debt-to-equity ratio also demonstrates an increasing trend, rising from 0.13 in 2021 to 1.05 in 2023. This suggests that the company's reliance on debt relative to its shareholders' equity has significantly increased. Additionally, the financial leverage ratio has also shown an upward trajectory, reaching 2.64 in 2023, indicating a higher level of financial risk due to increased debt financing.

Overall, these solvency ratios highlight a significant increase in Marinemax's leverage and reliance on debt to support its operations and growth. This may raise concerns about the company's long-term solvency and ability to manage its debt obligations effectively. It is important for investors and stakeholders to monitor these trends and assess the company's ability to generate sufficient cash flow to service its debt in the future.

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Coverage ratios

Based on the data provided, Marinemax, Inc.'s interest coverage ratio has fluctuated significantly over the past five years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt. In Sep 30, 2023, the interest coverage ratio was 3.76, indicating that the company's operating income was 3.76 times the amount of interest expense, suggesting a relatively lower ability to cover interest payments compared to previous years. In Sep 30, 2022, the interest coverage ratio was significantly higher at 80.78, reflecting a substantial improvement in the company's ability to cover its interest expenses. This was also the case in Sep 30, 2021, where the interest coverage ratio was 57.15. However, in Sep 30, 2020, the ratio dropped to 11.51, and in Sep 30, 2019, it was 5.23, indicating lower interest coverage in those years.

The substantial fluctuations in the interest coverage ratio over the five-year period suggest a volatile financial situation for Marinemax, Inc. It would be important to investigate the reasons behind these fluctuations, such as changes in operating income, interest expenses, and debt levels, to gain a deeper understanding of the company's financial performance and its ability to meet its debt obligations.