CarMax Inc (KMX)

Days of inventory on hand (DOH)

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	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
Inventory turnover		5.98	6.36	6.85	6.20	6.49	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
DOH	days	61.06	57.43	53.27	58.84	56.20	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

February 28, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.98
= 61.06

CarMax Inc's days of inventory on hand (DOH) has shown fluctuations over the years based on the data provided. The trend indicates that the company has experienced changes in managing its inventory levels efficiently.

From May 31, 2020, to November 30, 2022, the DOH fluctuated within a range, with a peak of 69.54 days in February 28, 2021, and a low of 43.36 days in November 30, 2022. This indicates some variability in the company's inventory management practices during this period.

Subsequently, from May 31, 2022, to August 31, 2024, the DOH remained relatively stable in the range of approximately 53 to 58 days. This suggests that CarMax Inc may have implemented strategies to stabilize its inventory levels during this period.

Overall, the fluctuation in CarMax Inc's DOH over the years may reflect changes in inventory procurement, sales trends, and operational efficiencies. It is essential for the company to closely monitor its inventory levels to optimize its working capital and maintain a balance between carrying costs and stock-out risks.