MarineMax Inc (HZO)
Interest coverage
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 127,521 | 135,720 | 149,555 | 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 |
| Interest expense (ttm) | US$ in thousands | 73,895 | 71,773 | 68,342 | 62,248 | 53,367 | 38,546 | 24,756 | 12,130 | 3,283 | 2,965 | 2,596 | 3,034 | 3,665 | 3,784 | 5,278 | 7,199 | 9,275 | 11,584 | 12,387 | 12,407 |
| Interest coverage | 1.73 | 1.89 | 2.19 | 2.95 | 3.76 | 5.64 | 9.61 | 20.95 | 80.77 | 87.00 | 93.83 | 74.05 | 57.15 | 52.46 | 31.50 | 17.10 | 11.51 | 7.47 | 5.38 | 5.41 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $127,521K ÷ $73,895K
= 1.73
MarineMax Inc's interest coverage ratio has displayed fluctuations over the analyzed periods, indicating varying levels of financial health and risk. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating earnings.
The interest coverage ratio for MarineMax Inc has typically been above 1, which implies that the company generates enough operating income to cover its interest expenses. However, the ratio has shown a downward trend in recent quarters, starting at a high of 93.83 in March 2022 and declining to 1.73 in September 2024.
The significant decrease in the interest coverage ratio raises concerns about the company's ability to cover its interest payments from its operating profits. A ratio below 1 would mean that the company is not generating enough operating income to cover its interest expenses, potentially leading to financial distress and increased risk.
It is crucial for investors and stakeholders to monitor MarineMax Inc's interest coverage ratio closely to assess the company's financial stability and its ability to service its debt obligations. A sustained improvement in the interest coverage ratio would indicate a healthier financial position, while a continued decline may raise flags regarding the company's financial health and ability to meet its debt obligations.
Peer comparison
Sep 30, 2024