CarMax Inc (KMX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,242,990 | 6,211,210 | 6,179,610 | 6,166,870 | 6,073,740 | 6,044,360 | 6,005,660 | 5,823,170 | 5,613,080 | 5,487,570 | 5,414,230 | 5,400,640 | 5,235,440 | 5,109,800 | 4,915,180 | 4,703,480 | 4,364,610 | 4,128,480 | 3,982,560 | 3,578,310 |
| ROE | 8.02% | 7.42% | 6.76% | 6.54% | 7.89% | 8.24% | 7.55% | 7.91% | 8.64% | 10.49% | 14.91% | 17.90% | 21.99% | 23.51% | 23.75% | 25.06% | 17.11% | 18.21% | 17.32% | 17.51% |
February 28, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $500,556K ÷ $6,242,990K
= 8.02%
CarMax Inc's return on equity (ROE) has shown fluctuations over the past few years, ranging from a high of 25.06% in May 2021 to a low of 6.54% in May 2024.
The ROE dropped consistently from May 2021 to August 2022, with a significant decline from 25.06% to 14.91% during this period. This trend could indicate a decrease in profitability relative to the equity invested in the company.
There was a slight improvement in ROE in the subsequent periods, with the ratio increasing to 8.02% by February 2025. However, the ROE has not yet reached the highs observed in previous years, suggesting that CarMax Inc may be facing challenges in generating returns for its shareholders compared to earlier periods.
Overall, the trend in CarMax Inc's ROE indicates variability in the company's profitability and efficiency in utilizing shareholders' equity over the specified period. Further analysis of the company's financial performance and potential factors influencing these fluctuations would provide more insights into its overall financial health and prospects.
Peer comparison
Feb 28, 2025