CarMax Inc (KMX)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 574,142 | 605,375 | 521,098 | 264,247 | 314,758 | 688,618 | 56,772 | 95,313 | 102,716 | 62,598 | 58,095 | 377,954 | 132,319 | 236,643 | 711,561 | 658,022 | 58,211 | 56,583 | 40,737 | 42,197 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.25 | 0.29 | 0.22 | 0.13 | 0.16 | 0.36 | 0.03 | 0.04 | 0.05 | 0.03 | 0.03 | 0.18 | 0.08 | 0.16 | 0.45 | 0.57 | 0.04 | 0.04 | 0.03 | 0.03 |
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 fluctuated over the periods indicated in the table. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
Based on the data provided:
- The cash ratio ranged from a low of 0.03 to a high of 0.57.
- The lowest cash ratio observed was 0.03 in several periods, indicating that CarMax had relatively lower cash reserves to cover its short-term obligations during those times.
- The highest cash ratio of 0.57 was recorded in one period, suggesting that CarMax had a stronger ability to cover its short-term liabilities with cash and equivalents at that time.
- The average cash ratio over the periods provided appears to be moderate, hovering around 0.17.
Overall, fluctuations in the cash ratio could indicate changes in CarMax's liquidity position and its ability to meet short-term financial obligations. It is essential for investors and analysts to monitor the company's cash ratio over time to assess its financial health and liquidity risk.
Peer comparison
Feb 29, 2024