CarMax Inc (KMX)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	27,196,800	27,173,200	27,300,200	26,962,400	26,182,700	25,938,900	26,470,500	26,338,700	26,338,300	25,575,200	24,453,300	22,832,900	21,541,500	20,932,800	21,246,300	19,972,500	21,082,200	20,487,200	20,140,300	19,714,500
Debt-to-assets ratio		0.06	0.06	0.06	0.07	0.07	0.07	0.09	0.10	0.12	0.10	0.09	0.06	0.06	0.06	0.09	0.08	0.08	0.08	0.08	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 of CarMax Inc has shown relatively stable levels over the past few quarters, ranging between 0.06 and 0.12. The ratio indicates the proportion of the company's total debt to its total assets. A lower ratio signifies lower financial risk and indicates that the company relies more on equity financing rather than debt financing. CarMax's ratio has been below 0.1 for most periods, suggesting a conservative capital structure. However, the slight increase in the ratio in recent quarters, reaching 0.12 in February 2022, may indicate a higher reliance on debt to finance its operations or investments during that period. Overall, CarMax Inc's debt-to-assets ratio suggests a balanced approach to capital structure management, with a tendency towards lower debt levels.