CarMax Inc (KMX)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 26,536,040 | 26,631,930 | 26,989,350 | 28,060,310 | 29,684,870 | 31,649,080 | 33,670,880 | 33,514,440 | 31,900,420 | 29,377,980 | 26,035,160 | 23,418,970 | 18,950,150 | 18,748,380 | 18,353,470 | 18,182,450 | 20,319,990 | 19,676,100 | 19,181,940 | 18,746,830 |
| Property, plant and equipment | US$ in thousands | 3,665,530 | 3,623,700 | 3,538,680 | 3,499,380 | 3,430,910 | 3,375,000 | 3,312,600 | 3,258,610 | 3,209,070 | 3,175,580 | 3,128,900 | 3,076,170 | 3,055,560 | 3,043,340 | 3,044,770 | 3,064,740 | 3,069,100 | 3,036,660 | 2,981,260 | 2,926,590 |
| Fixed asset turnover | 7.24 | 7.35 | 7.63 | 8.02 | 8.65 | 9.38 | 10.16 | 10.28 | 9.94 | 9.25 | 8.32 | 7.61 | 6.20 | 6.16 | 6.03 | 5.93 | 6.62 | 6.48 | 6.43 | 6.41 |
February 29, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $26,536,040K ÷ $3,665,530K
= 7.24
The fixed asset turnover ratio of CarMax Inc has shown some fluctuations over the past few quarters but has generally been on an upward trend. The ratio measures the efficiency of the company in generating sales revenue from its investment in fixed assets. From May 2019 to Feb 2024, the ratio has ranged from a low of 5.93 to a high of 10.28, indicating that CarMax has been able to utilize its fixed assets effectively to generate sales.
The increasing trend in the fixed asset turnover ratio signifies that the company has been improving its operational efficiency and maximizing the utilization of its fixed assets to generate revenues. This can be a positive indicator of effective asset management and operational performance.
Overall, the trend in CarMax's fixed asset turnover ratio suggests that the company has been successful in optimizing the use of its fixed assets to drive sales growth and operational efficiency. However, further analysis and comparison with industry benchmarks may provide deeper insights into the company's operational performance and efficiency in utilizing its fixed assets.
Peer comparison
Feb 29, 2024