CarMax Inc (KMX)

Debt-to-assets ratio

Feb 29, 2024 Feb 28, 2023 Feb 28, 2022 Feb 28, 2021 Feb 29, 2020
Long-term debt US$ in thousands 1,602,360 1,909,360 3,255,300 1,322,420 1,778,670
Total assets US$ in thousands 27,196,800 26,182,700 26,338,300 21,541,500 21,082,200
Debt-to-assets ratio 0.06 0.07 0.12 0.06 0.08

February 29, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,602,360K ÷ $27,196,800K
= 0.06

The debt-to-assets ratio for CarMax Inc has fluctuated over the past five years, ranging from 0.06 to 0.12. In 2022, the ratio was at its highest point of 0.12, indicating that the company relied more on debt financing relative to its total assets. This could suggest a higher level of financial leverage and potentially higher financial risk.

In the following year, the ratio decreased to 0.06, reflecting a lower level of debt relative to assets compared to the previous year. The ratio remained relatively stable in the most recent year at 0.07, indicating a moderate level of debt utilization in funding the company's assets.

Overall, the trend in CarMax Inc's debt-to-assets ratio suggests some variability in the company's leverage position over the years, but it has generally remained at a manageable level. It is important for investors and analysts to continue monitoring this ratio to assess the company's financial risk and stability.