CarMax Inc (KMX)

Return on equity (ROE)

		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	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Net income (ttm)	US$ in thousands	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	888,433	866,055	883,210	870,501
Total stockholders’ equity	US$ in thousands	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	3,768,880	3,698,050	3,611,560	3,452,760
ROE		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%	23.57%	23.42%	24.46%	25.21%

February 29, 2024 calculation

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

CarMax Inc's return on equity (ROE) has displayed variability over the past several quarters. The ROE has ranged from a low of 7.55% to a high of 25.21%. In recent quarters, there has been a slight downward trend in ROE, with the most recent figure standing at 7.89%. This decrease could indicate that the company's profitability in relation to shareholders' equity has declined.

It is worth noting that CarMax's ROE was notably higher in the earlier periods, reaching levels above 20%, indicating strong performance in generating profits from shareholders' equity during those periods. However, the recent decrease in ROE may raise concerns about the company's ability to sustain or improve its profitability levels.

Overall, further analysis of CarMax's financial performance, including factors affecting profitability and the utilization of equity, would be necessary to fully understand the implications of the changing ROE trend.