CarMax Inc (KMX)

Days of inventory on hand (DOH)

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Inventory turnover		6.48	7.22	5.58	5.25	6.18
DOH	days	56.35	50.59	65.37	69.54	59.04

February 29, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.48
= 56.35

CarMax Inc's days of inventory on hand (DOH) has fluctuated over the past five years. In fiscal year 2024, the company had an average of 56.35 days of inventory on hand, showing an improvement from the previous year's 50.59 days. This indicates that CarMax managed its inventory more efficiently in FY 2024 compared to FY 2023.

Looking further back, in FY 2022, the company had a higher DOH of 65.37 days, which suggests that CarMax took longer to sell its inventory during that period. However, in FY 2021 and FY 2020, the DOH was even higher at 69.54 days and 59.04 days, respectively, indicating that the company faced challenges in managing its inventory efficiently during those years.

Overall, while CarMax has shown improvement in managing its inventory in the most recent fiscal year, there is still room for further optimization to ensure that inventory turnover is maximized and costs related to excess inventory are minimized. Monitoring the trend of DOH over time can provide insights into the company's inventory management performance and efficiency.