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.