CarMax Inc (KMX)

Receivables 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
Revenue (ttm) US$ in thousands 26,536,040 26,631,930 26,989,350 28,060,310 29,684,870 31,649,080 33,670,880 33,514,440 31,900,420 29,377,980 26,035,160 23,418,970 18,950,150 18,748,380 18,353,470 18,182,450 20,319,990 19,676,100 19,181,940 18,746,830
Receivables US$ in thousands 16,666,400 16,700,100 16,764,800 16,626,700 16,229,200 16,067,700 15,993,300 16,010,300 15,583,300 15,492,700 15,093,500 14,575,800 13,693,800 13,405,300 13,232,000 12,990,200 191,090 174,937 173,291 159,579
Receivables turnover 1.59 1.59 1.61 1.69 1.83 1.97 2.11 2.09 2.05 1.90 1.72 1.61 1.38 1.40 1.39 1.40 106.34 112.48 110.69 117.48

February 29, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $26,536,040K ÷ $16,666,400K
= 1.59

The receivables turnover ratio for CarMax Inc has shown some fluctuations over the past few quarters. It measures the efficiency of the company in collecting outstanding receivables from customers during a specific period.

From the data provided, we can observe a general decreasing trend in the receivables turnover ratio from February 2020 to August 2022, indicating a slower pace of collections. This could potentially be a warning sign of inefficiencies in receivables management or changes in customer payment behavior during this period.

However, starting from the May 2022 quarter, there was an improvement in the receivables turnover ratio, with a gradual increase observed up to the Nov 2023 quarter. This uptrend suggests that CarMax Inc has become more efficient in collecting receivables from customers during the latter part of the observed period. An increase in the receivables turnover ratio generally indicates that the company is collecting outstanding receivables more quickly, which is a positive sign for liquidity and cash flow management.

The significant spike in the receivables turnover ratio in the Nov 2019 and Feb 2020 quarters to very high levels of 106.34 and 112.48, respectively, appears to be outliers or data anomalies that are not in line with the trend observed in the rest of the data.

Overall, it would be advisable for CarMax Inc to continue monitoring its receivables turnover ratio and implement strategies to maintain an optimal balance between efficient collections and customer relationships.