CarMax Inc (KMX)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	110,903	146,464	82,470	46,328	11,997	68,004	346,122	522,419	682,666	733,537	681,819	754,926	415,788	536,641	513,893	463,746	734,957	717,239	751,920	739,433
Total assets	US$ in thousands	27,196,800	27,173,200	27,300,200	26,962,400	26,182,700	25,938,900	26,470,500	26,338,700	26,338,300	25,575,200	24,453,300	22,832,900	21,541,500	20,932,800	21,246,300	19,972,500	21,082,200	20,487,200	20,140,300	19,714,500
Operating ROA		0.41%	0.54%	0.30%	0.17%	0.05%	0.26%	1.31%	1.98%	2.59%	2.87%	2.79%	3.31%	1.93%	2.56%	2.42%	2.32%	3.49%	3.50%	3.73%	3.75%

February 29, 2024 calculation

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

CarMax Inc's operating return on assets (operating ROA) has fluctuated over the past few reporting periods. The operating ROA ranged from a low of 0.05% in February 2023 to a high of 3.75% in November 2019. There was a general upward trend in operating ROA from May 2019 to November 2021, with the ratio peaking at 3.75% in November 2019. However, there was a subsequent decline in operating ROA, reaching a low point of 0.05% in February 2023 before gradually increasing again.

The operating ROA indicates how efficient CarMax Inc is at generating profits from its assets used in operations. A higher operating ROA suggests that the company is better at utilizing its assets to generate earnings, while a lower ratio may indicate inefficiency or lower profitability. CarMax Inc should continue to monitor and analyze its operating ROA to ensure optimal asset utilization and profitability in the future.