CarMax Inc (KMX)

Financial leverage ratio

Feb 28, 2025 Feb 29, 2024 Feb 28, 2023 Feb 28, 2022 Feb 28, 2021
Total assets US$ in thousands 882,575 27,196,800 26,182,700 26,338,300 21,541,500
Total stockholders’ equity US$ in thousands 891,303 6,073,740 5,613,080 5,235,440 4,364,610
Financial leverage ratio 0.99 4.48 4.66 5.03 4.94

February 28, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $882,575K ÷ $891,303K
= 0.99

The financial leverage ratio of CarMax Inc has shown some fluctuations over the years. The ratio was 4.94 as of February 28, 2021, increased to 5.03 by February 28, 2022, but then decreased to 4.66 on February 28, 2023, and further to 4.48 by February 29, 2024. Notably, there was a significant drop to 0.99 on February 28, 2025, suggesting a substantial decrease in financial leverage. Overall, the trend indicates some variation in the company's reliance on debt financing to support its operations and investments during the period under consideration.