CarMax's Days Sales Outstanding for the
three
months ended in May. 2026 was 2.66.
CarMax's Days Inventory for the
three
months ended in May. 2026 was 52.06.
CarMax's Days Payable for the
three
months ended in May. 2026 was 13.81.
Therefore, CarMax's Cash Conversion Cycle (CCC) for the
three
months ended in May. 2026 was 40.91.
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
CarMax Cash Conversion Cycle Related Terms
CarMax Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for CarMax's Cash Conversion Cycle 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.
MEX:KMX vs LAD, AN, ALTB: Cash Conversion Cycle Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle 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 Cash Conversion Cycle vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where CarMax's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
CarMax's Cash Conversion Cycle for the fiscal year that ended in Feb. 2026 is calculated as
* 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.
CarMax (MEX:KMX) has a Cash Conversion Cycle of 40.91 as of May. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on CarMax and its competitors.
Is CarMax's Cash Conversion Cycle too high?
CarMax's current Cash Conversion Cycle is 40.91. The Vehicles & Parts industry median Cash Conversion Cycle is 67.42. CarMax's value of 40.91 is 39.3% below this industry median. Overall, CarMax has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does CarMax's Cash Conversion Cycle compare to LAD and AN?
CarMax's Cash Conversion Cycle of 40.91 can be compared against companies in the Vehicles & Parts industry. The industry median Cash Conversion Cycle is 67.42. CarMax's value of 40.91 is 39.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Vehicles & Parts company?
The median Cash Conversion Cycle among Vehicles & Parts companies is 67.42, based on 1,325 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarMax's current Cash Conversion Cycle of 40.91 is 39.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on CarMax and its competitors. For the Vehicles & Parts industry, the median Cash Conversion Cycle is 67.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarMax's current Cash Conversion Cycle is 40.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CarMax stock overvalued right now?
Based on GuruFocus' analysis, CarMax (MEX:KMX) is currently considered Possible Value Trap. The stock's GF Value™ is MXN1,350.03, compared to a current price of MXN850.00 — trading 37% below its estimated fair value. The current Cash Conversion Cycle is 40.91 and 39.3% below the Vehicles & Parts industry median of 67.42. CarMax's overall GF Score™ is 58/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For CarMax (MEX:KMX), the current Cash Conversion Cycle is 40.91 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CarMax (MEX:KMX) Overvalued in 2026?
Based on GuruFocus' analysis, CarMax stock appears to be undervalued.
The current stock price of MXN850.00 is trading 37% below its estimated GF Value™ of MXN1,350.03.
GuruFocus considers CarMax to be Possible Value Trap.
Key valuation signals for MEX:KMX:
Cash Conversion Cycle: 40.91
GF Value™: MXN1,350.03 vs. price of MXN850.00 (37% below fair value)
Industry Position: 39.3% below the Vehicles & Parts median
No single metric tells the full story. See the MEX:KMX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CarMax sells, finances, and services used and new cars through a chain of over about 260 retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales were 80% of fiscal 2026 revenue and wholesale about 17%, with the remaining portion composed of extended service plans and repair. In fiscal 2026, the company retailed and wholesaled 780,684 and 538,203 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US, but still estimates that it had only about 3.6% US market share of vehicles zero to 10 years old in calendar 2025. CarMax is based in Richmond, Virginia.
58GF Score
Get the complete analysis for MEX:KMX
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:KMX has been successfully added to your 
