CarMax Inc (KMX)
Cash ratio
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 574,142 | 314,758 | 102,716 | 132,319 | 58,211 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,312,290 | 1,938,310 | 2,047,460 | 1,698,550 | 1,534,710 |
| Cash ratio | 0.25 | 0.16 | 0.05 | 0.08 | 0.04 |
February 29, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($574,142K
+ $—K)
÷ $2,312,290K
= 0.25
The cash ratio of CarMax Inc has shown a positive trend over the past five years, indicating an improvement in the company's ability to meet its short-term financial obligations using cash and cash equivalents.
In the most recent fiscal year ending on February 29, 2024, the cash ratio stood at 0.25, increasing from 0.16 in the previous year. This suggests that CarMax has significantly strengthened its liquidity position compared to the prior year.
Furthermore, the cash ratio has shown a consistent upward trajectory since February 28, 2020, when it was at 0.04. This steady improvement signifies the company's enhanced ability to cover its current liabilities solely with its readily available cash resources.
Overall, CarMax Inc's cash ratio demonstrates a positive trend, indicating a healthy liquidity position and a strengthened ability to fulfill short-term financial obligations using cash and cash equivalents.
Peer comparison
Feb 29, 2024