>
Switch to:

CarMax ROA %

: 4.83% (As of Aug. 2021)
View and export this data going back to 1997. Start your Free Trial

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. CarMax's annualized Net Income for the quarter that ended in Aug. 2021 was $1,141 Mil. CarMax's average Total Assets over the quarter that ended in Aug. 2021 was $23,643 Mil. Therefore, CarMax's annualized ROA % for the quarter that ended in Aug. 2021 was 4.83%.

The historical rank and industry rank for CarMax's ROA % or its related term are showing as below:

NYSE:KMX' s ROA % Range Over the Past 10 Years
Min: 3.5   Med: 4.54   Max: 5.45
Current: 5.26

3.5
5.45

During the past 13 years, CarMax's highest ROA % was 5.45%. The lowest was 3.50%. And the median was 4.54%.

NYSE:KMX's ROA % is ranked higher than
84% of the 129 Companies
in the Vehicles & Parts industry.

( Industry Median: 1.21 vs. NYSE:KMX: 5.26 )

CarMax ROA % Historical Data

The historical data trend for CarMax's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CarMax Annual Data
Trend Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.08 3.93 4.65 4.46 3.50

CarMax Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.76 4.46 3.95 7.87 4.83

Competitive Comparison

For the Auto & Truck Dealerships subindustry, CarMax's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

CarMax ROA % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's ROA % distribution charts can be found below:

* The bar in red indicates where CarMax's ROA % falls into.



CarMax ROA % Calculation

CarMax's annualized ROA % for the fiscal year that ended in Feb. 2021 is calculated as:

ROA %=Net Income (A: Feb. 2021 )/( (Total Assets (A: Feb. 2020 )+Total Assets (A: Feb. 2021 ))/ count )
=746.919/( (21082.182+21541.541)/ 2 )
=746.919/21311.8615
=3.50 %

CarMax's annualized ROA % for the quarter that ended in Aug. 2021 is calculated as:

ROA %=Net Income (Q: Aug. 2021 )/( (Total Assets (Q: May. 2021 )+Total Assets (Q: Aug. 2021 ))/ count )
=1141.068/( (22832.889+24453.322)/ 2 )
=1141.068/23643.1055
=4.83 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Aug. 2021) net income data. ROA % is displayed in the 30-year financial page.


CarMax  (NYSE:KMX) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Aug. 2021 )
=Net Income/Total Assets
=1141.068/23643.1055
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1141.068 / 31953.436)*(31953.436 / 23643.1055)
=Net Margin %*Asset Turnover
=3.57 %*1.3515
=4.83 %

Note: The Net Income data used here is four times the quarterly (Aug. 2021) net income data. The Revenue data used here is four times the quarterly (Aug. 2021) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


CarMax ROA % Related Terms

Thank you for viewing the detailed overview of CarMax's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


CarMax Business Description

CarMax logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 423110 SIC : 5521
Traded in Other Exchanges
Address
12800 Tuckahoe Creek Parkway, Richmond, VA, USA, 23238
CarMax sells, finances, and services used and new cars through a chain of 220 used retail stores at the end of fiscal 2021 plus one new vehicle store. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales account for about 83% of revenue, wholesale about 14%, and the remaining portion is composed of extended service plans and repair. In fiscal 2021, the company retailed and wholesaled 751,862 and 426,268 used vehicles, respectively. CarMax is the largest used vehicle retailer in the U.S., but still estimates that it has only about 3.5% U.S. market share of vehicles 0 to 10 years old but seeks over 5% by the end of calendar 2025. CarMax is based in Richmond, Virginia.
Executives
Oneil Mark F director C/O CARMAX, INC. 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Reedy Thomas W Jr officer: EVP of Finance 12800 TUCKHOE CREEK PARKWAY RICHMOND VA 23238
Margolin Eric M officer: EVP, Gen. Counsel & Secretary C/O ADVANCE AUTO PARTS 5673 AIRPORT RD ROANOKE VA 24012
Lyski James officer: EVP & Chief Marketing Officer ONE NATIONWIDE PLAZA 1-38-06 COLUMBUS OH 43215
Nash William D officer: President & CEO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Daniels Jon G officer: SVP, CAF 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Folliard Thomas J director 4900 COX RD GELN ALLEN VA 23060
Livesay Jill A officer: VP, Controller & PAO CARMAX, INC. 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Cafritz Diane L officer: SVP & CHRO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Hill Edwin J officer: EVP & COO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Blaylock Ronald E director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BLAYLOCK RONALD E a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Satriano Pietro director C/O US FOODS HOLDING CORP. 9399 W. HIGGINS RD., STE 100 ROSEMONT IL 60018
Shinder Marcella director 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Steenrod Mitchell D director 12800 TUCKAHOE CREEK PKWY RICHMOND VA 23238
Mccreight David W. director C/O URBAN OUTFITTERS, INC. 5000 SOUTH BROAD STREET PHILADELPHIA PA 19112

CarMax Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)