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.