CarMax Inc (KMX)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	6,073,740	5,613,080	5,235,440	4,364,610	3,768,880
ROE		7.89%	8.64%	21.99%	17.11%	23.57%

February 29, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $479,204K ÷ $6,073,740K
= 7.89%

CarMax Inc's return on equity (ROE) has fluctuated over the past five years. The ROE stood at 7.89% as of February 29, 2024, showing a slight decrease from the previous year's 8.64%. This decline may suggest a potential decrease in the company's efficiency in generating profits from its shareholders' equity.

Comparing the current ROE to the two previous years, there has been a significant drop from 21.99% in February 28, 2022, and 17.11% in February 28, 2021. This downward trend indicates a potential decline in CarMax's ability to generate returns on the equity invested in the company during these years.

However, it is worth noting that the ROE was relatively high in February 29, 2020, at 23.57%, suggesting that in the past, CarMax was more efficient in utilizing shareholders' equity to generate profits.

In conclusion, CarMax's ROE has shown variability over the years, with a recent downward trend. Further analysis of the company's financial performance and operational efficiency may be necessary to determine the factors influencing these fluctuations in ROE.