CarMax Inc (KMX)

Operating return on assets (Operating ROA)

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Operating income	US$ in thousands	110,903	11,997	682,666	415,788	714,504
Total assets	US$ in thousands	27,196,800	26,182,700	26,338,300	21,541,500	21,082,200
Operating ROA		0.41%	0.05%	2.59%	1.93%	3.39%

February 29, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $110,903K ÷ $27,196,800K
= 0.41%

CarMax Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. In the most recent year, as of February 29, 2024, the operating ROA stands at 0.41%, representing a slight increase from the prior year's 0.05%. Overall, this indicates that the company generated $0.41 in operating income for each dollar of assets in 2024.

Looking at the trend over the five-year period, there was a notable decrease in operating ROA from 3.39% in 2020 to 0.05% in 2023, potentially signaling operational difficulties or inefficiencies during that period. However, there was a rebound in 2024 to 0.41%, although still significantly lower than the 2020 level.

It is essential for CarMax Inc to continue monitoring and analyzing its operating ROA to ensure efficient asset utilization and profitability. Additionally, comparative analysis with industry peers could provide further insights into the company's performance and competitiveness.