CarMax Inc (KMX)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 6,073,740 | 5,613,080 | 5,235,440 | 4,364,610 | 3,768,880 |
| Debt-to-equity ratio | 0.26 | 0.34 | 0.62 | 0.30 | 0.47 |
February 29, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,602,360K ÷ $6,073,740K
= 0.26
The debt-to-equity ratio of CarMax Inc has fluctuated over the past five years. In the most recent year-ending Feb 29, 2024, the ratio stood at 0.26, indicating a conservative capital structure with relatively low levels of debt compared to equity. This suggests that CarMax has a strong equity base to support its operations and growth.
In the preceding years, the trend shows some variability. In Feb 28, 2023, the ratio increased to 0.34, reflecting a higher proportion of debt in the capital structure compared to the previous year. This trend continued in Feb 28, 2022, where the ratio peaked at 0.62, indicating a substantial reliance on debt financing. However, the ratio decreased significantly in the subsequent year (Feb 28, 2021) to 0.30, suggesting a reduction in debt levels or an increase in equity.
Looking back at Feb 29, 2020, the ratio was at 0.47, indicating a moderate level of leverage at that time. Overall, the fluctuation in the debt-to-equity ratio suggests that CarMax has actively managed its capital structure over the years, potentially adjusting its leverage to align with business needs, growth opportunities, and market conditions.
Peer comparison
Feb 29, 2024