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CarMax Return-on-Tangible-Equity

: 24.10% (As of Aug. 2021)
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Return-on-Tangible-Equity is calculated as Net Income attributable to Common Stockholders divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. CarMax's annualized net income attributable to common stockholders for the quarter that ended in Aug. 2021 was $1,141 Mil. CarMax's average shareholder tangible equity for the quarter that ended in Aug. 2021 was $4,734 Mil. Therefore, CarMax's annualized Return-on-Tangible-Equity for the quarter that ended in Aug. 2021 was 24.10%.

The historical rank and industry rank for CarMax's Return-on-Tangible-Equity or its related term are showing as below:

NYSE:KMX' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.26   Med: 19.51   Max: 26.6
Current: 26.6

15.26
26.6

During the past 13 years, CarMax's highest Return-on-Tangible-Equity was 26.60%. The lowest was 15.26%. And the median was 19.51%.

NYSE:KMX's Return-on-Tangible-Equity is ranked higher than
85% of the 1146 Companies
in the Vehicles & Parts industry.

( Industry Median: 8.93 vs. NYSE:KMX: 26.60 )

CarMax Return-on-Tangible-Equity Historical Data

The historical data trend for CarMax's Return-on-Tangible-Equity 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
Return-on-Tangible-Equity
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
Return-on-Tangible-Equity 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 24.10

Competitive Comparison

For the Auto & Truck Dealerships subindustry, CarMax's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Return-on-Tangible-Equity distribution charts can be found below:

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



CarMax Return-on-Tangible-Equity Calculation

CarMax's annualized Return-on-Tangible-Equity for the fiscal year that ended in Feb. 2021 is calculated as

Return-on-Tangible-Equity=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Feb. 2021 )  (A: Feb. 2020 )(A: Feb. 2021 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Feb. 2021 )  (A: Feb. 2020 )(A: Feb. 2021 )
=746.919/( (3768.875+4364.613 )/ 2 )
=746.919/4066.744
=18.37 %

CarMax's annualized Return-on-Tangible-Equity for the quarter that ended in Aug. 2021 is calculated as

Return-on-Tangible-Equity=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Aug. 2021 )  (Q: May. 2021 )(Q: Aug. 2021 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Aug. 2021 )  (Q: May. 2021 )(Q: Aug. 2021 )
=1141.068/( (4703.481+4764.836)/ 2 )
=1141.068/4734.1585
=24.10 %

* 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 Return-on-Tangible-Equity, the net income attributable to common stockholders of the last fiscal year and the average total shareholder tangible 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. Return-on-Tangible-Equity is displayed in the 10-year financial page.


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

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.


CarMax Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of CarMax's Return-on-Tangible-Equity 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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