CarMax Inc (KMX)

Inventory turnover

		Feb 28, 2025	Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021
Cost of revenue	US$ in thousands	23,455,500	23,822,800	26,884,700	28,612,900	16,571,000
Inventory	US$ in thousands	3,934,620	3,678,070	3,726,140	5,124,570	3,157,160
Inventory turnover		5.96	6.48	7.22	5.58	5.25

February 28, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $23,455,500K ÷ $3,934,620K
= 5.96

CarMax Inc's inventory turnover has exhibited varying trends over the past five years. The ratio increased from 5.25 in February 28, 2021, to 5.58 in February 28, 2022, indicating a moderate improvement in inventory management efficiency. Subsequently, there was a significant increase as the ratio jumped to 7.22 by February 28, 2023, signaling a notable enhancement in inventory turnover.

However, in the following year, the inventory turnover ratio decreased to 6.48 by February 29, 2024. While this reduction suggests a slight decline in the efficiency of managing inventory, the ratio still remains at a relatively healthy level. It is worth noting that the inventory turnover ratio for February 28, 2025, is not available, potentially due to data constraints.

Overall, the fluctuating trend in CarMax Inc's inventory turnover demonstrates the company's ability to optimize its inventory levels and achieve a balance between maintaining sufficient inventory to meet customer demand and minimizing excess inventory that could tie up capital. Investors and stakeholders may continue to monitor this metric to assess the company's effectiveness in managing its inventory efficiently.