CarMax Inc (KMX)

Total asset turnover

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	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
Revenue (ttm)	US$ in thousands	25,976,900	25,902,070	25,962,380	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
Total assets	US$ in thousands	27,297,100	27,295,800	27,242,100	27,524,700	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
Total asset turnover		0.95	0.95	0.95	0.96	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

November 30, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $25,976,900K ÷ $27,297,100K
= 0.95

Total asset turnover is a key financial ratio that measures the efficiency of a company in generating sales revenue from its total assets. In the case of CarMax Inc, the total asset turnover ratio has shown fluctuations over the past few years.

From February 2020 to November 2024, the total asset turnover ratio ranged from 0.86 to 1.27. The ratio has generally been increasing since August 2021, indicating that CarMax has been more effective in utilizing its assets to generate sales revenue during this period.

However, it's important to note that the ratio dipped slightly in November 2023 and February 2024 before stabilizing around 0.95 in the latter part of 2024. This suggests that CarMax may have faced challenges in optimizing asset utilization during this period.

Overall, the trend in CarMax's total asset turnover ratio reflects the company's ability to efficiently utilize its assets to drive revenue growth. An increasing total asset turnover ratio is generally seen as a positive indicator of operational efficiency and effective asset management.