CarMax Inc (KMX)

Payables 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
Cost of revenue (ttm)	US$ in thousands	23,822,830	23,893,930	24,287,520	25,318,110	26,884,670	28,748,870	30,510,800	30,276,020	28,612,880	26,160,060	23,022,370	20,469,510	16,571,020	16,337,760	15,960,630	15,848,310	17,597,650	17,027,240	16,577,490	16,185,190
Payables	US$ in thousands	933,708	762,594	932,068	967,420	826,592	802,780	928,749	1,066,920	937,717	936,556	903,847	1,058,000	799,333	570,174	683,715	390,160	737,144	641,434	628,507	656,902
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

February 29, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $23,822,830K ÷ $933,708K
= 25.51

The payables turnover ratio is a measure of how efficiently a company manages its accounts payable by analyzing the number of times a company pays off its suppliers in a given period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

Analyzing the payables turnover ratio of CarMax Inc over the past few quarters, we see fluctuations in the ratio. The ratio ranged from 19.35 to 40.62 over the last 20 quarters.

The highest payables turnover ratio of 40.62 was observed in the quarter ending May 31, 2020, while the lowest ratio of 19.35 was recorded in the quarter ending August 31, 2021. This fluctuation may suggest changes in CarMax's payment terms with its suppliers, overall efficiency in managing payables, or variations in purchasing activity.

On average, the payables turnover ratio for CarMax Inc over the analyzed period stands at around 28.46. It is important to further investigate the reasons behind the fluctuations in the payables turnover ratio to understand the company's payment policies, supplier relationships, and overall financial health.