CarMax Inc (KMX)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | 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 |
| Quick 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($246,960K
+ $—K
+ $—K)
÷ $2,197,970K
= 0.11
The quick ratio, also known as the acid-test ratio, measures a company's ability to pay its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that a company may have difficulty meeting its short-term liabilities.
Analyzing CarMax Inc's quick ratio over the specified time period, we observe fluctuations in the ratio. As of February 28, 2025, the quick ratio stands at 0.11, suggesting that the company may face challenges in meeting its short-term obligations with its current liquid assets.
From the historical data:
- The quick ratio was relatively stable around 0.2 to 0.3 from November 2021 to February 2023, indicating a somewhat satisfactory liquidity position during that period.
- However, there was a noticeable decline in the quick ratio in the subsequent quarters, with the ratio dropping to as low as 0.03 in August 2021 and staying below 0.2 until August 2024.
- A significant improvement was seen in the quick ratio for the quarter ending February 28, 2025, when it rose to 0.11. This uptick might suggest some enhancement in CarMax Inc's liquidity position in the most recent period.
In conclusion, while the quick ratio for CarMax Inc has exhibited volatility over the recorded period, the ratio's recent increase to 0.11 as of February 28, 2025, could potentially indicate an improvement in the company's short-term liquidity position. However, continual monitoring and analysis of the quick ratio in conjunction with other financial metrics would be necessary to assess CarMax Inc's overall financial health accurately.
Peer comparison
Feb 28, 2025