CarMax Inc (KMX)

Return on assets (ROA)

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Net income	US$ in thousands	479,204	484,762	1,151,300	746,919	888,433
Total assets	US$ in thousands	27,196,800	26,182,700	26,338,300	21,541,500	21,082,200
ROA		1.76%	1.85%	4.37%	3.47%	4.21%

February 29, 2024 calculation

ROA = Net income ÷ Total assets
= $479,204K ÷ $27,196,800K
= 1.76%

CarMax Inc's return on assets (ROA) has fluctuated over the past five years. The company's ROA decreased from 4.21% in February 2020 to 3.47% in February 2021, indicating a temporary decline in profitability. However, there was a significant rebound in ROA in February 2022, reaching 4.37%, suggesting improved asset utilization and efficiency.

Subsequently, in February 2023, the ROA slightly decreased to 1.85%, which may indicate challenges in maintaining profitability. The most recent data in February 2024 shows a further decline in ROA to 1.76%, signaling a potential decrease in the company's ability to generate profit from its assets.

Overall, CarMax Inc's ROA trend suggests a degree of inconsistency in generating returns from its assets. Further analysis would be required to understand the underlying factors driving these fluctuations and to assess the company's overall financial performance and efficiency in utilizing its assets.