CarMax Inc (KMX)
Return on total capital
| 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 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 1,238,662 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 3,768,880 |
| Return on total capital | 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% | 32.87% |
November 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $922,037K ÷ ($—K + $6,211,210K)
= 14.84%
CarMax Inc's return on total capital has shown some fluctuation over the past few years. The ratio stood at 32.87% as of February 29, 2020, indicating that the company generated $0.3287 in profit for every dollar of total capital employed. The ratio decreased to 24.05% by May 31, 2020, and further declined to 23.68% by August 31, 2020.
There was a slight increase in the return on total capital to 24.93% by November 30, 2020, before dropping to 22.98% by February 28, 2021. The ratio then improved to 33.47% by May 31, 2021, indicating a strong performance in that period. However, it decreased to 31.77% by August 31, 2021, and further to 30.96% by November 30, 2021.
There was a gradual decline in the return on total capital over the subsequent periods, with the ratio reaching 11.56% as of February 29, 2024. The most recent data point as of November 30, 2024, shows a slight increase to 14.84%. Overall, the trend in the return on total capital reflects some volatility and a general downward movement over the period under consideration, with occasional fluctuations in performance.
Peer comparison
Nov 30, 2024