MarineMax Inc (HZO)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,605,070 | 2,421,300 | 1,352,770 | 1,007,820 | 775,319 |
| Total stockholders’ equity | US$ in thousands | 975,795 | 915,843 | 782,666 | 594,892 | 455,397 |
| Financial leverage ratio | 2.67 | 2.64 | 1.73 | 1.69 | 1.70 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,605,070K ÷ $975,795K
= 2.67
MarineMax Inc's financial leverage ratio has exhibited an upward trend from 1.70 in 2020 to 2.67 in 2024. This indicates that the company has been increasing its reliance on debt financing over the years to support its operations and growth. The ratio exceeding 2 suggests that a significant portion of the company's assets is funded by debt rather than equity. A higher financial leverage ratio can amplify the company's returns on equity if the returns from assets exceed the cost of borrowing. However, it also increases the financial risk as the company has higher interest obligations to meet, especially during economic downturns or periods of rising interest rates. MarineMax Inc's increasing financial leverage ratio warrants close monitoring to ensure that the company maintains a healthy balance between debt and equity to support sustainable long-term growth and profitability.
Peer comparison
Sep 30, 2024