CarMax Inc (KMX)
Total asset turnover
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 26,353,400 | 26,536,000 | 29,684,900 | 31,900,400 | 18,950,100 |
| Total assets | US$ in thousands | 882,575 | 27,196,800 | 26,182,700 | 26,338,300 | 21,541,500 |
| Total asset turnover | 29.86 | 0.98 | 1.13 | 1.21 | 0.88 |
February 28, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $26,353,400K ÷ $882,575K
= 29.86
The total asset turnover ratio for CarMax Inc has shown significant fluctuations over the past five years. In February 2021, the ratio was 0.88, indicating that CarMax generated $0.88 in sales for every $1 of assets. This ratio increased to 1.21 in February 2022, suggesting an improvement in the efficiency of asset utilization. However, in February 2023, the ratio decreased to 1.13, and further dropped to 0.98 by February 2024, indicating a potential decline in asset productivity.
The most notable anomaly in the data is seen in February 2025, where the total asset turnover ratio surged to 29.86. Such a significant spike in the ratio may be attributed to various factors such as changes in business operations, accounting practices, or irregular events like asset sales or revaluations. Consequently, this outlier raises questions about the reliability of the ratio as a measure of asset efficiency for CarMax Inc.
Overall, the analysis of CarMax's total asset turnover ratio reflects varying levels of asset utilization efficiency over the years, with 2025 standing out as an exceptional year warranting further investigation into the underlying reasons for the unusually high ratio.
Peer comparison
Feb 28, 2025