CarMax Inc (KMX)
Total asset 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 |
| Total assets | US$ in thousands | 27,196,800 | 26,182,700 | 26,338,300 | 21,541,500 | 21,082,200 |
| Total asset turnover | 0.98 | 1.13 | 1.21 | 0.88 | 0.96 |
February 29, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $26,536,000K ÷ $27,196,800K
= 0.98
Total asset turnover measures how efficiently a company is utilizing its assets to generate sales. In the case of CarMax Inc, the total asset turnover ratio has fluctuated over the past five years, ranging from 0.88 to 1.21. A higher ratio indicates that the company is generating more revenue per dollar of assets, reflecting strong asset utilization.
In 2024, CarMax's total asset turnover ratio stands at 0.98, which is lower than the previous year's figure of 1.13. This suggests that the company generated $0.98 in sales for every dollar of assets in 2024, compared to $1.13 in 2023. The decline in total asset turnover may indicate a decrease in sales relative to the asset base, implying potential inefficiencies in asset utilization in the most recent year.
Overall, while variations in total asset turnover ratios are normal and can be influenced by various factors, it is essential for CarMax Inc to closely monitor and improve its asset utilization efficiency to enhance profitability and maximize shareholder value.
Peer comparison
Feb 29, 2024