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CarMax Return-on-Tangible-Asset

: 5.76% (As of Aug. 2020)
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Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. CarMax's annualized Net Income for the quarter that ended in Aug. 2020 was $1,187 Mil. CarMax's average total tangible assets for the quarter that ended in Aug. 2020 was $20,609 Mil. Therefore, CarMax's annualized Return-on-Tangible-Asset for the quarter that ended in Aug. 2020 was 5.76%.

NYSE:KMX' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 3.35   Med: 4.61   Max: 8.04
Current: 3.35

3.35
8.04

During the past 13 years, CarMax's highest Return-on-Tangible-Asset was 8.04%. The lowest was 3.35%. And the median was 4.61%.

NYSE:KMX's Return-on-Tangible-Asset is ranked higher than
68% of the 1150 Companies
in the Vehicles & Parts industry.

( Industry Median: 1.08 vs. NYSE:KMX: 3.35 )

CarMax Return-on-Tangible-Asset Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

CarMax Annual Data
Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20
Return-on-Tangible-Asset Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.51 4.08 3.93 4.65 4.46

CarMax Quarterly Data
Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20
Return-on-Tangible-Asset 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 4.69 3.41 4.14 0.10 5.76

Competitive Comparison
* 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.


CarMax Return-on-Tangible-Asset Distribution

* The bar in red indicates where CarMax's Return-on-Tangible-Asset falls into.



CarMax Return-on-Tangible-Asset Calculation

CarMax's annualized Return-on-Tangible-Asset for the fiscal year that ended in Feb. 2020 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Feb. 2020 )  (A: Feb. 2019 )(A: Feb. 2020 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Feb. 2020 )  (A: Feb. 2019 )(A: Feb. 2020 )
=888.433/( (18717.867+21082.182)/ 2 )
=888.433/19900.0245
=4.46 %

CarMax's annualized Return-on-Tangible-Asset for the quarter that ended in Aug. 2020 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Aug. 2020 )  (Q: May. 2020 )(Q: Aug. 2020 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Aug. 2020 )  (Q: May. 2020 )(Q: Aug. 2020 )
=1186.784/( (19972.532+21246.306)/ 2 )
=1186.784/20609.419
=5.76 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Aug. 2020) net income data.


CarMax  (NYSE:KMX) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset 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. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset 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 Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


CarMax Return-on-Tangible-Asset Related Terms


CarMax Return-on-Tangible-Asset Headlines

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