CarMax Inc (KMX)

Days of inventory on hand (DOH)

		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	Feb 29, 2020
Inventory turnover		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	6.18
DOH	days	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	59.04

November 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.36
= 57.43

The days of inventory on hand (DOH) for CarMax Inc has shown some fluctuations over the multiple periods analyzed. It is evident that the company has managed to maintain their inventory levels relatively stable, with some variations throughout the years.

From February 29, 2020, to May 31, 2023, the DOH ranged between 43.75 days and 69.54 days. There was a notable drop in DOH from 69.54 days on February 28, 2021, to 56.55 days on May 31, 2022, indicating an improvement in inventory turnover efficiency during that period.

However, there was a slight increase in DOH from 55.89 days on August 31, 2022, to 57.43 days on November 30, 2024. The DOH has since fluctuated within a narrow range between 53.27 days and 58.84 days, showing a relatively stable inventory management performance.

Overall, the company's DOH figures suggest that CarMax Inc has been managing its inventory effectively, with a focus on optimizing its inventory levels to ensure efficient operations and minimize excess inventory carrying costs. However, it is essential for the company to continue monitoring and adjusting its inventory management strategies to maintain an optimal balance between inventory levels and sales demand.