CarMax Inc (KMX)

Receivables turnover

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Revenue	US$ in thousands	26,536,000	29,684,900	31,900,400	18,950,100	20,320,000
Receivables	US$ in thousands	16,666,400	16,229,200	15,583,300	13,693,800	191,090
Receivables turnover		1.59	1.83	2.05	1.38	106.34

February 29, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $26,536,000K ÷ $16,666,400K
= 1.59

CarMax Inc's receivables turnover has fluctuated over the past five years, indicating varying efficiencies in collecting receivables. The trend shows a gradual decrease from 2.05 in February 2022 to 1.59 in February 2024. This declining trend suggests a potential lengthening of the average collection period for receivables over the period.

In particular, the significant drop in receivables turnover from 106.34 in February 2020 to 1.38 in February 2021 is noteworthy and may indicate a unique event or anomaly that affected the company's collection practices during that period.

Overall, CarMax Inc's recent receivables turnover of 1.59 in February 2024 indicates that the company collected its outstanding receivables about 1.59 times during the year. This suggests a longer average collection period compared to the previous years, and management may need to assess and enhance its receivables collection processes to improve efficiency and liquidity.