CarMax Inc (KMX)

Return on assets (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
Net income (ttm)	US$ in thousands	500,556	460,958	417,520	403,346	479,204	497,948	453,525	460,795	484,762	575,586	807,444	966,806	1,151,297	1,201,406	1,167,268	1,178,697	746,919	751,908	689,764	626,667
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
ROA		1.83%	1.69%	1.53%	1.48%	1.74%	1.83%	1.66%	1.71%	1.85%	2.22%	3.05%	3.67%	4.37%	4.70%	4.77%	5.16%	3.47%	3.59%	3.25%	3.14%

February 28, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $500,556K ÷ $27,404,200K
= 1.83%

CarMax Inc's return on assets (ROA) has fluctuated over the past few years, indicating varying levels of efficiency in generating profits from its assets. The ROA started at 3.14% as of May 31, 2020, and showed a slight improvement to 3.25% by August 31, 2020. There was a notable increase to 5.16% by May 31, 2021, suggesting a period of strong asset utilization.

However, the ROA declined to 3.05% by August 31, 2022, and further decreased to 1.48% by May 31, 2024, reflecting a significant reduction in profitability relative to the assets employed. The ROA recovered slightly to 1.83% as of February 28, 2025.

Overall, CarMax Inc's ROA has displayed a mixed performance, with periods of improvement followed by declines. The company may need to focus on enhancing its operational efficiency and asset utilization to consistently improve its ROA in the future.