CarMax Inc (KMX)

Working capital 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 current assets	US$ in thousands	5,226,590	5,109,950	5,386,370	5,363,670	5,041,370	4,984,020	5,872,460	6,117,970	6,549,290	5,955,070	5,371,300	4,690,600	4,116,800	3,737,100	4,327,860	3,283,730	3,663,690	3,450,240	3,384,940	3,283,740
Total current liabilities	US$ in thousands	2,312,290	2,083,240	2,320,390	2,113,970	1,938,310	1,937,050	2,132,190	2,251,750	2,047,460	2,056,850	1,958,960	2,093,390	1,698,550	1,437,790	1,598,940	1,151,010	1,534,710	1,421,040	1,396,700	1,485,400
Working capital turnover		9.11	8.80	8.80	8.63	9.57	10.39	9.00	8.67	7.09	7.54	7.63	9.02	7.84	8.15	6.73	8.53	9.54	9.70	9.65	10.42

February 29, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $26,536,040K ÷ ($5,226,590K – $2,312,290K)
= 9.11

The working capital turnover ratio of CarMax Inc has shown fluctuations over the periods under review. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio implies better efficiency in utilizing working capital.

From the data provided, CarMax Inc's working capital turnover ratio has varied between 6.73 and 10.39 over the evaluated periods. The highest ratio was recorded in November 2022 at 10.39, indicating strong efficiency in converting working capital into sales. On the other hand, the lowest ratio of 6.73 was observed in August 2020, indicating a relatively lower efficiency during that period.

Overall, the company displayed varying levels of efficiency in utilizing its working capital throughout the periods analyzed. It is essential for CarMax Inc to consistently monitor and manage its working capital effectively to sustain operational efficiency and support continued growth in sales.