CarMax Inc (KMX)

Working capital 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 current assets	US$ in thousands	—	5,226,590	5,041,370	6,549,290	4,116,800
Total current liabilities	US$ in thousands	—	2,312,290	1,938,310	2,047,460	1,698,550
Working capital turnover		—	9.11	9.57	7.09	7.84

February 28, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $26,353,400K ÷ ($—K – $—K)
= —

Based on the data provided for CarMax Inc's working capital turnover ratio, we observe the following trend:

- In February 28, 2021, the working capital turnover ratio was 7.84.
- By February 28, 2022, the ratio decreased to 7.09, indicating a decline in the efficiency of CarMax Inc's working capital management.
- However, in the following years, there was an improvement in the working capital turnover ratio. By February 28, 2023, the ratio increased significantly to 9.57, reflecting a more efficient utilization of working capital.
- This positive trend continued into February 29, 2024, with the ratio slightly decreasing to 9.11, still maintaining strong efficiency in working capital turnover.

Notably, for February 28, 2025, the working capital turnover ratio is not provided (denoted as "—"). It would be insightful to obtain the missing data point to assess if the trend of improved efficiency in working capital turnover persists or encounters any changes in the subsequent year.

Overall, the fluctuation in CarMax Inc's working capital turnover ratio suggests variations in the company's ability to generate sales revenue relative to the level of working capital employed. Monitoring this ratio over time is essential for evaluating the effectiveness of CarMax Inc's working capital management strategy and its impact on the company's operational performance.