MarineMax Inc (HZO)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 127,554 | 200,606 | 265,204 | 209,459 | 106,715 |
| Interest expense | US$ in thousands | 73,895 | 53,367 | 3,283 | 3,665 | 9,275 |
| Interest coverage | 1.73 | 3.76 | 80.78 | 57.15 | 11.51 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $127,554K ÷ $73,895K
= 1.73
MarineMax Inc's interest coverage ratio has experienced fluctuations over the five-year period from September 30, 2020, to September 30, 2024. The interest coverage ratio is used to assess a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates that the company is more capable of servicing its debt obligations.
In September 2020, MarineMax Inc's interest coverage ratio stood at 11.51, reflecting a healthy ability to cover its interest payments. However, there was a substantial decline in the ratio in the following year to 57.15, indicating a potential decrease in the company's ability to cover its interest expenses.
The interest coverage ratio then sharply increased to 80.78 in September 2022, showing a significant improvement in the company's ability to meet its interest obligations. This spike may be due to increased earnings or a decrease in interest expenses during that period.
In the most recent years, the interest coverage ratio has decreased to 3.76 in September 2023 and further to 1.73 in September 2024. These declining ratios may raise concerns about MarineMax Inc's ability to cover its interest expenses with its operating income.
Overall, the fluctuating trend in MarineMax Inc's interest coverage ratio over the five-year period suggests varying levels of financial health and the need for further assessment of the company's debt management and operational performance.
Peer comparison
Sep 30, 2024