CarMax Inc (KMX)

Number of days of payables

		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
Payables turnover		25.51	31.33	26.06	26.17	32.52	35.81	32.85	28.38	30.51	27.93	25.47	19.35	20.73	28.65	23.34	40.62	23.87	26.55	26.38	24.64
Number of days of payables	days	14.31	11.65	14.01	13.95	11.22	10.19	11.11	12.86	11.96	13.07	14.33	18.87	17.61	12.74	15.64	8.99	15.29	13.75	13.84	14.81

February 29, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 25.51
= 14.31

CarMax Inc's number of days of payables has shown some variations over the past several quarters. Typically, a lower number of days of payables indicates that the company takes less time to pay its suppliers, while a higher number suggests that the company's payables are outstanding for a longer period.

From the data provided, we can observe fluctuations in the number of days of payables, ranging from as low as 8.99 days to as high as 18.87 days. The trend seems to show some seasonality, with occasional spikes in the number of days of payables seen in August 2021 and May 2020.

Overall, CarMax Inc's management of payables appears relatively efficient, with the number of days of payables hovering around the low to mid-teens range in most quarters. However, monitoring this metric over time is important to ensure that the company maintains a balanced approach in managing its payment terms with suppliers.