CarMax Inc (KMX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 766,345 | 780,762 | 719,082 | 729,531 | 757,202 | 873,935 | 1,174,056 | 1,363,960 | 1,586,441 | 1,640,884 | 1,590,585 | 1,611,171 | 1,051,435 | 1,067,837 | 987,274 | 903,074 | 1,243,993 | 1,221,858 | 1,239,078 | 1,219,903 |
| Long-term debt | US$ in thousands | 1,602,360 | 1,605,640 | 1,608,720 | 1,906,500 | 1,909,360 | 1,903,220 | 2,511,420 | 2,569,750 | 3,255,300 | 2,602,600 | 2,190,420 | 1,320,210 | 1,322,420 | 1,319,500 | 1,896,780 | 1,693,890 | 1,778,670 | 1,704,280 | 1,689,080 | 1,573,870 |
| 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 |
| Return on total capital | 9.98% | 10.21% | 9.44% | 9.44% | 10.07% | 11.82% | 14.81% | 17.11% | 18.68% | 21.28% | 22.38% | 26.75% | 18.49% | 19.60% | 16.79% | 17.13% | 22.42% | 22.62% | 23.38% | 24.27% |
February 29, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $766,345K ÷ ($1,602,360K + $6,073,740K)
= 9.98%
CarMax Inc's return on total capital has shown some fluctuations over the past few quarters. The ratio has been ranging between 9.44% and 10.21% in the recent periods. However, there was a notable increase in return on total capital in the earlier quarters, with figures reaching as high as 26.75% and 24.27%.
Overall, CarMax Inc's return on total capital has displayed a general declining trend from the peak levels seen in the previous periods but has remained above 9% consistently. This analysis suggests that the company may have experienced changes in its capital utilization efficiency or profitability performance compared to the earlier periods. Further investigation into the factors driving these fluctuations would be necessary to provide a comprehensive understanding of CarMax Inc's financial performance and potential future prospects.
Peer comparison
Feb 29, 2024