CarMax Inc (KMX)

Total asset 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
Total assets	US$ in thousands	27,196,800	27,173,200	27,300,200	26,962,400	26,182,700	25,938,900	26,470,500	26,338,700	26,338,300	25,575,200	24,453,300	22,832,900	21,541,500	20,932,800	21,246,300	19,972,500	21,082,200	20,487,200	20,140,300	19,714,500
Total asset turnover		0.98	0.98	0.99	1.04	1.13	1.22	1.27	1.27	1.21	1.15	1.06	1.03	0.88	0.90	0.86	0.91	0.96	0.96	0.95	0.95

February 29, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $26,536,040K ÷ $27,196,800K
= 0.98

CarMax Inc's total asset turnover ratio has exhibited fluctuations over the past 20 reporting periods. The ratio measures the efficiency with which the company generates revenue relative to its total assets. A total asset turnover ratio of less than 1 indicates that CarMax is generating less revenue per dollar of assets, which may suggest underutilization of assets or inefficiencies in operations.

The ratio has shown a declining trend from August 2022 to February 2021, reaching its lowest point of 0.88 in February 2021. This decline could indicate a decrease in revenue generation relative to the size of the asset base during this period.

However, from May 2021 to May 2023, the total asset turnover ratio gradually increased, peaking at 1.27 in both August 2022 and May 2022. This improvement suggests that CarMax was able to enhance its revenue-generating efficiency and utilize its assets more effectively during these periods.

Overall, the fluctuations in CarMax's total asset turnover ratio indicate varying levels of operational efficiency and asset utilization over time. Further analysis of the company's financial performance and operational strategies would be necessary to understand the factors contributing to these changes in the total asset turnover ratio.