CarMax Inc (KMX)
Financial leverage ratio
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 27,196,800 | 26,182,700 | 26,338,300 | 21,541,500 | 21,082,200 |
| Total stockholders’ equity | US$ in thousands | 6,073,740 | 5,613,080 | 5,235,440 | 4,364,610 | 3,768,880 |
| Financial leverage ratio | 4.48 | 4.66 | 5.03 | 4.94 | 5.59 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $27,196,800K ÷ $6,073,740K
= 4.48
The financial leverage ratio of CarMax Inc has exhibited a fluctuating trend over the past five fiscal years. The ratio decreased from 5.59 in February 2020 to 4.48 in February 2024, indicating a reduction in the company's reliance on debt to finance its operations and assets. This downward trend suggests that CarMax Inc has been gradually decreasing its financial leverage, which may reflect a more conservative approach to managing its debt levels. Despite some variability in the ratios over the years, the overall trend indicates a positive movement towards a lower level of financial risk associated with high leverage.
Peer comparison
Feb 29, 2024