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CarMax ROE %

: 23.73% (As of Aug. 2021)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. CarMax's annualized net income attributable to common stockholders for the quarter that ended in Aug. 2021 was $1,141 Mil. CarMax's average Total Stockholders Equity over the quarter that ended in Aug. 2021 was $4,809 Mil. Therefore, CarMax's annualized ROE % for the quarter that ended in Aug. 2021 was 23.73%.

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

NYSE:KMX' s ROE % Range Over the Past 10 Years
Min: 15.26   Med: 19.51   Max: 26.42
Current: 26.42

15.26
26.42

During the past 13 years, CarMax's highest ROE % was 26.42%. The lowest was 15.26%. And the median was 19.51%.

NYSE:KMX's ROE % is ranked higher than
91% of the 1157 Companies
in the Vehicles & Parts industry.

( Industry Median: 7.66 vs. NYSE:KMX: 26.42 )

CarMax ROE % Historical Data

The historical data trend for CarMax's ROE % 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
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.85 20.67 25.25 24.94 18.37

CarMax Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
ROE % 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 31.39 23.21 19.78 38.53 23.73

Competitive Comparison

For the Auto & Truck Dealerships subindustry, CarMax's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution

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

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



CarMax ROE % Calculation

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

ROE %=Net Income attributable to Common Stockholders (A: Feb. 2021 )/( (Total Stockholders Equity (A: Feb. 2020 )+Total Stockholders Equity (A: Feb. 2021 ))/ count )
=746.919/( (3768.875+4364.613)/ 2 )
=746.919/4066.744
=18.37 %

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

ROE %=Net Income attributable to Common Stockholders (Q: Aug. 2021 )/( (Total Stockholders Equity (Q: May. 2021 )+Total Stockholders Equity (Q: Aug. 2021 ))/ count )
=1141.068/( (4703.481+4915.179)/ 2 )
=1141.068/4809.33
=23.73 %

* 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 ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Aug. 2021) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


CarMax  (NYSE:KMX) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Aug. 2021 )
=Net Income/Total Stockholders Equity
=1141.068/4809.33
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1141.068 / 31953.436)*(31953.436 / 23643.1055)*(23643.1055 / 4809.33)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.57 %*1.3515*4.9161
=ROA %*Equity Multiplier
=4.82 %*4.9161
=23.73 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Aug. 2021 )
=Net Income/Total Stockholders Equity
=1141.068/4809.33
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (1141.068 / 1471.256) * (1471.256 / 561.236) * (561.236 / 31953.436) * (31953.436 / 23643.1055) * (23643.1055 / 4809.33)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7756 * 2.6215 * 1.76 % * 1.3515 * 4.9161
=23.73 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Aug. 2021) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Aug. 2021) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


CarMax ROE % Related Terms

Thank you for viewing the detailed overview of CarMax's ROE % 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

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