CarMax Inc (KMX)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 26,353,420 | 25,976,900 | 25,902,070 | 25,962,380 | 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 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 4,157,080 | 4,079,400 | 3,499,380 | 3,430,910 | 3,904,780 | 3,842,890 | 3,258,610 | 3,746,420 | 3,719,220 | 3,682,620 | 3,076,170 | 3,055,560 | 3,043,340 | 3,044,770 | 3,064,740 |
| Fixed asset turnover | — | — | — | — | — | 6.41 | 6.62 | 8.02 | 8.65 | 8.11 | 8.76 | 10.28 | 8.51 | 7.90 | 7.07 | 7.61 | 6.20 | 6.16 | 6.03 | 5.93 |
February 28, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $26,353,420K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company generates sales from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate revenue.
Analyzing the fixed asset turnover ratios of CarMax Inc over the specified time period, we observe an increasing trend from May 31, 2020, to May 31, 2022, reaching a peak of 10.28. This suggests that during this period, CarMax was able to generate a higher level of sales relative to its investment in fixed assets.
Subsequently, the fixed asset turnover ratio shows some fluctuations but generally maintains a relatively high level, indicating continued efficiency in asset utilization. Even though there are some slight declines in the ratio in the latter part of the period, such as reaching 6.41 on November 30, 2023, the ratio remains above the initial levels observed in 2020.
The data for the future periods (after February 28, 2024) is not available, but based on the historical trend, it is essential for CarMax Inc to monitor its fixed asset turnover closely to ensure optimal utilization of its fixed assets in generating sales and maintaining efficiency in operations.
Peer comparison
Feb 28, 2025