CarMax Inc (KMX)

Total asset turnover

		Feb 28, 2025	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
Revenue (ttm)	US$ in thousands	26,353,420	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
Total assets	US$ in thousands	27,404,200	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
Total asset turnover		0.96	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

February 28, 2025 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $26,353,420K ÷ $27,404,200K
= 0.96

Total asset turnover is a financial ratio that measures a company's ability to generate revenue from its assets. A higher total asset turnover indicates that the company is more efficient in utilizing its assets to generate sales.

Based on the data provided for CarMax Inc, we can observe fluctuations in the total asset turnover over the period from May 31, 2020, to February 28, 2025. The total asset turnover ratio for CarMax Inc started at 0.91 on May 31, 2020, showing that the company generated $0.91 in sales for every dollar of assets it had.

The ratio fluctuated over time, reaching a peak of 1.27 on August 31, 2022, indicating that the company improved its efficiency in utilizing assets to generate revenue. Subsequently, the ratio declined but remained relatively stable around the range of 0.95 to 1.22 until February 28, 2025.

Overall, the increasing trend in total asset turnover from May 31, 2020, to August 31, 2022, followed by a relatively stable performance, suggests that CarMax Inc has been effectively managing its assets to generate sales. However, it is essential for the company to monitor and maintain this efficiency to ensure continued profitability and operational effectiveness.