CarMax Inc (KMX)
Working capital 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 current assets | US$ in thousands | 5,226,590 | 5,041,370 | 6,549,290 | 4,116,800 | 3,663,690 |
| Total current liabilities | US$ in thousands | 2,312,290 | 1,938,310 | 2,047,460 | 1,698,550 | 1,534,710 |
| Working capital turnover | 9.11 | 9.57 | 7.09 | 7.84 | 9.54 |
February 29, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $26,536,000K ÷ ($5,226,590K – $2,312,290K)
= 9.11
The working capital turnover for CarMax Inc has shown varying trends over the past five years. The ratio indicates how effectively the company is utilizing its working capital to generate sales revenue.
In the most recent fiscal year ending February 29, 2024, the working capital turnover was 9.11, showing a slight decrease compared to the previous year's ratio of 9.57. This reduction may suggest a slightly less efficient use of working capital to generate sales revenue.
Looking further back, the working capital turnover was 7.09 in February 28, 2022, increased to 7.84 in February 28, 2021, and then rose again to 9.54 in February 29, 2020. These fluctuations indicate that CarMax Inc has experienced changes in its working capital efficiency over the years.
Overall, the company has generally maintained a relatively high working capital turnover, indicating efficient management of working capital in generating sales revenue. However, the recent slight decrease in the ratio should be monitored to ensure optimal utilization of working capital going forward.
Peer comparison
Feb 29, 2024