CarMax Inc (KMX)
Quick ratio
| 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 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 574,142 | 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 | 56,583 | 40,737 | 42,197 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 16,666,400 | 16,700,100 | 16,764,800 | 16,626,700 | 16,229,200 | 16,067,700 | 15,993,300 | 16,010,300 | 15,583,300 | 15,492,700 | 15,093,500 | 14,575,800 | 13,693,800 | 13,405,300 | 13,232,000 | 12,990,200 | 191,090 | 174,937 | 173,291 | 159,579 |
| Total current liabilities | US$ in thousands | 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 | 1,421,040 | 1,396,700 | 1,485,400 |
| Quick ratio | 7.46 | 8.31 | 7.45 | 7.99 | 8.54 | 8.65 | 7.53 | 7.15 | 7.66 | 7.56 | 7.73 | 7.14 | 8.14 | 9.49 | 8.72 | 11.86 | 0.16 | 0.16 | 0.15 | 0.14 |
February 29, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($574,142K
+ $—K
+ $16,666,400K)
÷ $2,312,290K
= 7.46
The quick ratio of CarMax Inc has shown consistency and strength over the past few quarters, with a range between 7.14 and 9.49. This indicates that the company has a healthy ability to meet its short-term obligations using its most liquid assets.
In particular, the quick ratio has been above 1 (considered optimal) in all periods except for the last two quarters of FY2020, where it dropped significantly to 0.16. This could indicate potential liquidity issues during that time frame.
Overall, the trend in the quick ratio for CarMax Inc suggests that the company has generally maintained a strong liquidity position and a prudent approach to managing its short-term obligations. It is essential to monitor future trends in the quick ratio to assess the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Feb 29, 2024