CarMax Inc (KMX)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 246,960 | 271,910 | 524,667 | 755,338 | 1,080,790 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,197,970 | 2,097,290 | 2,155,800 | 1,985,900 | 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 |
| Cash ratio | 0.11 | 0.13 | 0.24 | 0.38 | 0.47 | 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 |
February 28, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($246,960K
+ $—K)
÷ $2,197,970K
= 0.11
CarMax Inc's cash ratio, a liquidity ratio that measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents, has fluctuated over the past few years. Analyzing the trend from February 2020 to February 2025, the cash ratio ranged from a low of 0.03 in August 2021 to a high of 0.57 in May 2020.
It is evident that there have been significant fluctuations in the cash ratio over the period. The ratio dropped to 0.03 in August 2021, indicating a limited ability to cover short-term obligations with cash on hand. However, there was a notable increase in the cash ratio to 0.47 by February 2024, suggesting improved liquidity.
The cash ratio improved further to 0.38 in May 2024 but declined again to 0.11 by February 2025, indicating a decrease in the company's ability to cover short-term liabilities with its cash resources.
Overall, CarMax Inc's cash ratio has shown volatility over the analyzed period, reflecting fluctuations in the company's cash position relative to its short-term obligations. Monitoring this ratio is crucial for assessing the company's liquidity position and its ability to meet short-term financial commitments.
Peer comparison
Feb 28, 2025