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CarMax Return-on-Tangible-Equity

: 0.54% (As of May. 2020)
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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 May. 2020 was $20 Mil. CarMax's average shareholder tangible equity for the quarter that ended in May. 2020 was $3,674 Mil. Therefore, CarMax's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2020 was 0.54%.

NYSE:KMX' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.26   Med: 19.51   Max: 25.25
Current: 17.3

15.26
25.25

During the past 13 years, CarMax's highest Return-on-Tangible-Equity was 25.25%. The lowest was 15.26%. And the median was 19.51%.

NYSE:KMX's Return-on-Tangible-Equity is ranked higher than
87% of the 1096 Companies
in the Vehicles & Parts industry.

( Industry Median: 3.21 vs. NYSE:KMX: 17.30 )

CarMax Return-on-Tangible-Equity 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-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.57 20.85 20.67 25.25 24.94

CarMax Quarterly Data
Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20
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 31.34 26.45 18.95 23.03 0.54

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-Equity Distribution

* 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. 2020 is calculated as

Return-on-Tangible-Equity=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Feb. 2020 )  (A: Feb. 2019 )(A: Feb. 2020 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Feb. 2020 )  (A: Feb. 2019 )(A: Feb. 2020 )
=888.433/( (3357.028+3768.875 )/ 2 )
=888.433/3562.9515
=24.94 %

CarMax's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2020 is calculated as

Return-on-Tangible-Equity=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: May. 2020 )  (Q: Feb. 2020 )(Q: May. 2020 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: May. 2020 )  (Q: Feb. 2020 )(Q: May. 2020 )
=19.912/( (3768.875+3578.31)/ 2 )
=19.912/3673.5925
=0.54 %

* 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-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 (May. 2020) 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


CarMax Return-on-Tangible-Equity Headlines

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