CarMax Inc (KMX)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 61.06 | 57.43 | 53.27 | 58.84 | 56.20 | 55.59 | 57.70 | 58.84 | 50.59 | 43.36 | 55.89 | 56.55 | 65.37 | 65.01 | 65.09 | 57.93 | 69.54 | 62.11 | 64.60 | 43.75 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 61.06 | 57.43 | 53.27 | 58.84 | 56.20 | 55.59 | 57.70 | 58.84 | 50.59 | 43.36 | 55.89 | 56.55 | 65.37 | 65.01 | 65.09 | 57.93 | 69.54 | 62.11 | 64.60 | 43.75 |
February 28, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 61.06 + — – —
= 61.06
The cash conversion cycle of CarMax Inc has shown fluctuations over the periods provided. The cycle represents the number of days it takes for the company to convert its resources into cash.
From May 31, 2020, to August 31, 2020, there was an increase in the cash conversion cycle, indicating a longer period for the company to convert its resources into cash. This trend continued until February 28, 2021, when the cycle reached its peak at 69.54 days.
From May 31, 2021, there was a noticeable improvement as the cash conversion cycle decreased, suggesting the company was able to manage its cash more efficiently. However, there were fluctuations in the cycle until August 31, 2022, where it decreased significantly to 55.89 days.
The cycle continued to show variability until November 30, 2024, where it was at 57.43 days. Subsequently, a decline in the cycle was observed, reaching 53.27 days by August 31, 2024.
Overall, the cash conversion cycle of CarMax Inc has shown some fluctuations, indicating changes in the efficiency of cash management and resource conversion into cash over the periods provided.
Peer comparison
Feb 28, 2025