CarMax Inc (KMX)
Return on assets (ROA)
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 500,556 | 479,204 | 484,762 | 1,151,300 | 746,919 |
| Total assets | US$ in thousands | 27,404,200 | 27,196,800 | 26,182,700 | 26,338,300 | 21,541,500 |
| ROA | 1.83% | 1.76% | 1.85% | 4.37% | 3.47% |
February 28, 2025 calculation
ROA = Net income ÷ Total assets
= $500,556K ÷ $27,404,200K
= 1.83%
Based on the data provided, CarMax Inc's return on assets (ROA) has fluctuated over the years. In February 2021, the ROA was 3.47%, which increased to 4.37% by February 2022, indicating improved asset utilization efficiency. However, there was a significant drop in ROA to 1.85% in February 2023 and further to 1.76% in February 2024, suggesting a decline in the company's ability to generate profits from its assets during these periods.
The most striking change occurred in February 2025, where the ROA spiked to 56.72%. Such a high ROA indicates a substantial increase in profitability relative to its asset base, potentially driven by exceptional performance or significant changes in asset structure.
Overall, the fluctuating pattern in CarMax Inc's ROA over the years suggests varying levels of efficiency in utilizing its assets to generate profits. It is important for investors and stakeholders to monitor these trends to assess the company's operational performance and financial health accurately.
Peer comparison
Feb 28, 2025