CarMax Inc (KMX)
Return on total capital
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 777,301 | 766,345 | 757,202 | 1,551,870 | 1,043,160 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 891,303 | 6,073,740 | 5,613,080 | 5,235,440 | 4,364,610 |
| Return on total capital | 87.21% | 12.62% | 13.49% | 29.64% | 23.90% |
February 28, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $777,301K ÷ ($—K + $891,303K)
= 87.21%
CarMax Inc's return on total capital has shown fluctuations over the past five years. It stood at 23.90% as of February 28, 2021, and experienced a notable increase to 29.64% by February 28, 2022. However, there was a significant decline to 13.49% by February 28, 2023, followed by a further decrease to 12.62% by February 29, 2024. The most recent data point as of February 28, 2025, indicates a substantial spike in return on total capital to 87.21%.
These fluctuations in return on total capital suggest varying levels of efficiency in CarMax Inc’s utilization of its total capital to generate profits. Further investigation is necessary to understand the factors driving these fluctuations and assess the sustainability and strategic implications of the recent sharp increase in return on total capital.
Peer comparison
Feb 28, 2025