CarMax Inc (KMX)

Days of inventory on hand (DOH)

		Feb 28, 2025	Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021
Inventory turnover		5.96	6.48	7.22	5.58	5.25
DOH	days	61.23	56.35	50.59	65.37	69.54

February 28, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.96
= 61.23

Days of inventory on hand (DOH) is a crucial measure for CarMax Inc's inventory management efficiency. Looking at the trend over the past few years, we see an improvement in the company's inventory management practices.

In February 2021, CarMax Inc had an average of 69.54 days of inventory on hand. This figure decreased to 65.37 days by February 2022, indicating a more efficient management of inventory levels. By February 2023, the DOH further dropped to 50.59 days, showing significant progress in streamlining inventory turnover.

However, there was a slight uptick in DOH by February 2024, with the metric increasing to 56.35 days. It will be important for CarMax Inc to monitor this trend closely to ensure inventory levels are optimized effectively. The absence of data for February 2025 makes it challenging to assess the most recent performance.

Overall, the decreasing trend in DOH up to February 2023 suggests CarMax Inc has been successful in managing its inventory more efficiently. This trend is indicative of better inventory turnover and liquidity within the company. Continued monitoring and optimization of inventory levels will be essential for sustaining this positive performance.