CarMax Inc (KMX)

Days of inventory on hand (DOH)

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Inventory turnover		6.48	6.57	6.33	6.20	7.22	8.42	6.53	6.45	5.58	5.61	5.61	6.30	5.25	5.88	5.65	8.34	6.18	6.35	6.36	6.34
DOH	days	56.35	55.59	57.70	58.84	50.59	43.36	55.89	56.55	65.37	65.01	65.09	57.93	69.54	62.11	64.60	43.75	59.04	57.50	57.35	57.53

February 29, 2024 calculation

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

Days of Inventory on Hand (DOH) is an important financial ratio that measures how efficiently a company manages its inventory. CarMax Inc's DOH over the past several quarters has shown some fluctuations. In the most recent quarter, ending February 29, 2024, the company had an estimated DOH of 56.35 days, which indicates that it took approximately 56.35 days for CarMax to sell its inventory on hand.

Looking at the trend over the past few quarters, CarMax's DOH has remained relatively stable, with slight variations. The highest DOH was recorded in the quarter ending May 31, 2022, at 65.37 days, while the lowest was in the quarter ending May 31, 2020, at 43.75 days. These fluctuations suggest some variations in the efficiency of CarMax's inventory management during these periods.

Overall, CarMax's DOH indicates that the company generally maintains a reasonable balance between its inventory levels and sales. However, continuous monitoring and potential improvements in inventory management practices could further enhance operational efficiency and financial performance.