CarMax Inc (KMX)

Financial leverage ratio

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	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
Total assets	US$ in thousands	27,297,100	27,295,800	27,242,100	27,524,700	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
Total stockholders’ equity	US$ in thousands	6,211,210	6,179,610	6,166,870	6,073,740	6,044,360	6,005,660	5,823,170	5,613,080	5,487,570	5,414,230	5,400,640	5,235,440	5,109,800	4,915,180	4,703,480	4,364,610	4,128,480	3,982,560	3,578,310	3,768,880
Financial leverage ratio		4.39	4.42	4.42	4.53	4.50	4.55	4.63	4.66	4.73	4.89	4.88	5.03	5.01	4.98	4.85	4.94	5.07	5.33	5.58	5.59

November 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $27,297,100K ÷ $6,211,210K
= 4.39

The financial leverage ratio of CarMax Inc has shown a gradual decrease over the analysis period from February 29, 2020, to November 30, 2024, indicating a decreasing reliance on debt to finance its operations. The ratio decreased from 5.59 on February 29, 2020, to 4.39 on November 30, 2024. This reduction suggests that the company has been managing its debt levels effectively, potentially enhancing its financial stability and solvency. The declining trend in the leverage ratio could indicate a strengthened financial position and reduced risk associated with high levels of debt. Overall, the decreasing trend in the financial leverage ratio reflects positively on CarMax Inc's ability to manage its debt effectively over the years.