CarMax Inc (KMX)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,041 | -25,871 | 85,591 | 46,757 | 516,815 | 865,840 | 634,750 | 786,499 | 720,370 | 775,703 | 1,387,756 | 1,575,760 | 1,749,441 | 2,069,184 | 1,965,285 | 1,782,430 | 1,222,694 | 924,996 | 844,433 | 903,074 |
| Total assets | US$ in thousands | 27,404,200 | 27,297,100 | 27,295,800 | 27,242,100 | 27,524,700 | 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 |
| Operating ROA | 0.01% | -0.09% | 0.31% | 0.17% | 1.88% | 3.19% | 2.33% | 2.92% | 2.75% | 2.99% | 5.24% | 5.98% | 6.64% | 8.09% | 8.04% | 7.81% | 5.68% | 4.42% | 3.97% | 4.52% |
February 28, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,041K ÷ $27,404,200K
= 0.01%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profit from its operating activities relative to its total assets. Analyzing CarMax Inc's Operating ROA over the specified periods reveals fluctuations in the company's operational efficiency and asset utilization.
Starting in May 2020, CarMax Inc's Operating ROA was 4.52%, indicating that the company generated approximately $0.0452 in operating income for every dollar of assets held. Over the next few quarters, the Operating ROA fluctuated, reaching a low of 0.17% in May 2024 and briefly turning negative in November 2024 at -0.09%. These declines suggest challenges in effectively utilizing assets to generate operating profits during those periods.
However, there were periods of improvement as well, with notable peaks in Operating ROA of 8.09% in November 2021 and 8.04% in August 2021. These peaks indicate that CarMax Inc was able to significantly increase operational efficiency and profitability relative to its asset base during those quarters.
Overall, the trend in CarMax Inc's Operating ROA shows volatility and fluctuation over the analyzed periods, reflecting varying levels of operational performance and asset utilization efficiency within the company. It is crucial for stakeholders to closely monitor these ratios to assess the company’s operational effectiveness and financial health.
Peer comparison
Feb 28, 2025