CarMax Inc (KMX)

Financial leverage ratio

Feb 28, 2025 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
Total assets US$ in thousands 27,404,200 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
Total stockholders’ equity US$ in thousands 6,242,990 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
Financial leverage ratio 4.39 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

February 28, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $27,404,200K ÷ $6,242,990K
= 4.39

CarMax Inc's financial leverage ratio has shown a declining trend over the past few years, indicating a reduction in the company's reliance on debt to finance its operations. As of February 28, 2025, the financial leverage ratio stands at 4.39, which suggests that for every dollar of equity, the company has $4.39 of debt. This ratio has decreased from a high of 5.58 on May 31, 2020, reflecting an improvement in the company's financial structure and reduced risk associated with high levels of leverage. The decreasing trend in the financial leverage ratio indicates that CarMax Inc has been effectively managing its debt levels and potentially enhancing its financial stability and solvency.