CarMax Inc (KMX)
Quick ratio
| 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 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 58,211 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 1,534,710 |
| Quick ratio | 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 | 0.04 |
November 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($271,910K
+ $—K
+ $—K)
÷ $2,097,290K
= 0.13
The quick ratio of CarMax Inc reflects its ability to meet its short-term financial obligations with its most liquid assets. The quick ratio has fluctuated over the past few years, ranging from as low as 0.03 to as high as 0.57. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations without relying on inventory.
In recent periods, the quick ratio has shown some variability, which may be attributed to changes in the company's liquidity position. It is important to note that a quick ratio of 0.36 to 0.47 during the most recent periods suggests an improvement in CarMax Inc's ability to cover its short-term liabilities with its quick assets.
Overall, an analysis of the quick ratio of CarMax Inc indicates fluctuations in its short-term liquidity position, which can provide insights into the company's financial health and ability to manage its short-term obligations effectively. Further monitoring of the quick ratio will be essential to gauge the company's ongoing liquidity management strategies.
Peer comparison
Nov 30, 2024