CarMax Inc (KMX)
Activity ratios
Short-term
Turnover ratios
| 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 | Feb 29, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.36 | 6.85 | 6.20 | 6.49 | 6.57 | 6.33 | 6.20 | 7.22 | 8.42 | 6.53 | 6.45 | 5.58 | 5.61 | 5.61 | 6.30 | 5.25 | 5.88 | 5.65 | 8.34 | 6.18 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 9.55 | 9.58 | 8.70 | 9.11 | 8.80 | 8.80 | 8.63 | 9.57 | 10.39 | 9.00 | 8.67 | 7.09 | 7.54 | 7.63 | 9.02 | 7.84 | 8.15 | 6.73 | 8.53 | 9.54 |
CarMax Inc's inventory turnover ratio has fluctuated over the past few years, ranging from a low of 5.25 to a high of 8.42. This ratio indicates how efficiently the company is managing its inventory by showing how many times the inventory is sold and replaced over a specific period. A higher inventory turnover ratio generally implies better inventory management and faster sales.
The receivables turnover and payables turnover ratios have not been provided in the data, which limits our ability to analyze CarMax Inc's accounts receivable and accounts payable management efficiency.
The working capital turnover ratio, which measures how efficiently the company is using its working capital to generate sales, has also shown variability over the years, with values ranging from 6.73 to 10.39. A higher working capital turnover ratio suggests that the company is effectively utilizing its working capital to generate revenue.
Overall, based on the inventory turnover and working capital turnover ratios, CarMax Inc appears to have effective inventory management and working capital utilization practices in place, which is crucial for sustaining a healthy financial performance.
Average number of days
| 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 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 57.43 | 53.27 | 58.84 | 56.20 | 55.59 | 57.70 | 58.84 | 50.59 | 43.36 | 55.89 | 56.55 | 65.37 | 65.01 | 65.09 | 57.93 | 69.54 | 62.11 | 64.60 | 43.75 | 59.04 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
CarMax Inc's Days of Inventory on Hand (DOH) has displayed fluctuations over the past few years. The company's DOH ranged from a low of 43.36 days on November 30, 2022, to a high of 69.54 days on February 28, 2021. Generally, CarMax Inc has managed to keep its inventory levels within a reasonable range, with a decreasing trend in recent periods, reaching 53.27 days on August 31, 2024.
Unfortunately, there is no data available for CarMax Inc's Days of Sales Outstanding (DSO) and Number of Days of Payables, which limits our ability to assess the efficiency of the company in collecting receivables and managing payables.
Overall, based on the available data for Days of Inventory on Hand, CarMax Inc seems to be effectively managing its inventory levels, which is essential for its operations as a retailer of used cars.
Long-term
| 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 | Feb 29, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 6.62 |
| Total asset turnover | 0.95 | 0.95 | 0.95 | 0.96 | 0.98 | 0.99 | 1.04 | 1.13 | 1.22 | 1.27 | 1.27 | 1.21 | 1.15 | 1.06 | 1.03 | 0.88 | 0.90 | 0.86 | 0.91 | 0.96 |
The fixed asset turnover ratio for CarMax Inc has shown a fluctuating trend over the years, starting at 6.62 in February 2020 and reaching a peak of 10.28 in May 2022. However, it decreased to 6.41 by November 2023 before stabilizing around 6.62 in August 2023. This ratio indicates the efficiency of using fixed assets to generate sales, and the downward trend suggests that CarMax may need to improve its utilization of fixed assets to generate revenue.
On the other hand, the total asset turnover ratio, which measures how efficiently the company utilizes all its assets to generate revenue, has also fluctuated. Starting at 0.96 in February 2020, it peaked at 1.27 in May 2022 before decreasing to 0.95 by November 2024. This ratio shows a varying efficiency in generating revenue from total assets, implying fluctuations in operational efficiency over the years.
Overall, the analysis of CarMax Inc's long-term activity ratios suggests that the company's efficiency in utilizing both fixed and total assets to generate revenue has varied over the years, indicating potential opportunities for improving asset turnover efficiency to enhance financial performance.