CarMax Inc (KMX)

Current 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
Total current assets	US$ in thousands	5,077,640	4,818,640	4,859,060	4,970,310	5,226,590	5,109,950	5,386,370	5,363,670	5,041,370	4,984,020	5,872,460	6,117,970	6,549,290	5,955,070	5,371,300	4,690,600	4,116,800	3,737,100	4,327,860	3,283,730
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
Current ratio		2.31	2.30	2.25	2.50	2.26	2.45	2.32	2.54	2.60	2.57	2.75	2.72	3.20	2.90	2.74	2.24	2.42	2.60	2.71	2.85

February 28, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,077,640K ÷ $2,197,970K
= 2.31

CarMax Inc's current ratio has exhibited fluctuations over the period under review. The current ratio, a measure of a company's ability to meet its short-term obligations with its current assets, stood at 2.85 as of May 31, 2020, and showed a general decreasing trend until February 28, 2022, where it reached its lowest point at 2.42.

Following this decline, the current ratio started to improve and reached its peak of 3.20 on February 28, 2022. However, the ratio then experienced some fluctuations but remained above 2.00, indicating that CarMax Inc has ample current assets to cover its current liabilities.

Overall, CarMax Inc's current ratio shows a generally healthy liquidity position, as it has consistently stayed above 2.00 during the period under review. This suggests that the company has a strong ability to meet its short-term obligations using its current assets.