CarMax Inc (KMX)

Current ratio

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Total current assets	US$ in thousands	5,226,590	5,041,370	6,549,290	4,116,800	3,663,690
Total current liabilities	US$ in thousands	2,312,290	1,938,310	2,047,460	1,698,550	1,534,710
Current ratio		2.26	2.60	3.20	2.42	2.39

February 29, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,226,590K ÷ $2,312,290K
= 2.26

CarMax Inc's current ratio has fluctuated over the past five years. The current ratio indicates the company's ability to cover its short-term liabilities with its current assets.

In 2024, the current ratio stands at 2.26, a decrease from the previous year's ratio of 2.60. This suggests that CarMax Inc may have reduced liquidity in 2024 compared to 2023. However, the current ratio of 2.26 still indicates that the company has sufficient current assets to cover its short-term obligations.

Comparing the current ratio to previous years, we observe a significant decrease from 3.20 in 2022 to 2.42 in 2021, followed by a slight increase to 2.39 in 2020. Despite the fluctuations, CarMax Inc has generally maintained a current ratio above 2 over the past five years, reflecting a healthy level of liquidity to meet its short-term commitments.

Overall, while the current ratio has shown some variability, CarMax Inc's current ratio trend indicates a generally stable financial position with adequate liquidity to manage its short-term obligations.