CarMax Inc (KMX)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,161,636	922,037	677,884	663,541	702,315	716,732	744,738	753,778	844,062	960,795	1,141,422	1,341,583	1,536,388	1,581,828	1,561,336	1,574,024	1,002,860	1,029,361	943,115	860,738
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		18.61%	14.84%	10.97%	10.76%	11.56%	11.86%	12.40%	12.94%	15.04%	17.51%	21.08%	24.84%	29.35%	30.96%	31.77%	33.47%	22.98%	24.93%	23.68%	24.05%

February 28, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,161,636K ÷ ($—K + $6,242,990K)
= 18.61%

CarMax Inc's return on total capital has shown fluctuations over the reported periods. The ratio decreased from 24.05% on May 31, 2020, to 10.97% on August 31, 2024, before experiencing an uptrend to 18.61% on February 28, 2025. The company experienced a significant peak of 33.47% on May 31, 2021. However, there was a subsequent decline in the ratio over the following periods.

Overall, the return on total capital for CarMax Inc demonstrates variability but generally indicates the company's ability to generate returns from the total capital employed in its operations. Analyzing trends and comparing with industry benchmarks can provide additional insights into the company's performance and efficiency in utilizing its capital resources.