CarMax (NYSE:KMX) Debt-to-Equity

: 3.28 (As of Aug. 2023)

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CarMax's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Aug. 2023 was $895 Mil. CarMax's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Aug. 2023 was $18,802 Mil. CarMax's Total Stockholders Equity for the quarter that ended in Aug. 2023 was $6,006 Mil. CarMax's debt to equity for the quarter that ended in Aug. 2023 was 3.28.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

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

KMX' s Debt-to-Equity Range Over the Past 10 Years
Min: 2.22 Med: 3.66 Max: 4.33
Current: 3.28

During the past 13 years, the highest Debt-to-Equity Ratio of CarMax was 4.33. The lowest was 2.22. And the median was 3.66.

KMX's Debt-to-Equity is ranked worse than
95.18% of 1121 companies
in the Vehicles & Parts industry
Industry Median: 0.46 vs KMX: 3.28

CarMax Debt-to-Equity Historical Data

The historical data trend for CarMax's Debt-to-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

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Debt-to-Equity

4.22

4.21

3.56

3.68

3.37

CarMax Quarterly Data
	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23
Debt-to-Equity																3.56	3.42	3.37	3.31	3.28

Competitive Comparison

For the Auto & Truck Dealerships subindustry, CarMax's Debt-to-Equity, along with its competitors' market caps and Debt-to-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.

Annual Data Quarterly Data

CarMax Debt-to-Equity Distribution

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

* The bar in red indicates where CarMax's Debt-to-Equity falls into.

CarMax Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

CarMax's Debt to Equity Ratio for the fiscal year that ended in Feb. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(632.755	+	18298.965)	/	5613.077
	=	3.37

CarMax's Debt to Equity Ratio for the quarter that ended in Aug. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(894.777	+	18801.686)	/	6005.659
	=	3.28

CarMax (NYSE:KMX) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

CarMax Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of CarMax's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

CarMax (NYSE:KMX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » CarMax Inc (NYSE:KMX) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

KMX:Mexico XA4:Germany

Address

12800 Tuckahoe Creek Parkway, Richmond, VA, USA, 23238

Website

https://www.carmax.com

CarMax sells, finances, and services used and new cars through a chain of about 240 used 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 typically account for about 83% of revenue (78% in fiscal 2023 due to the chip shortage) and wholesale about 13% (20% in fiscal 2023), with the remaining portion composed of extended service plans and repair. In fiscal 2023, the company retailed and wholesaled 807,823, and 585,071 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the U.S. but still estimates that it has only about 4% U.S. market share of vehicles 0-10 years old in 2022. It seeks over 5% share by the end of calendar 2025. CarMax is based in Richmond, Virginia.

Executives

Enrique N Mayor-mora	officer: SVP & CFO	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Mark F Oneil	director	C/O CARMAX, INC., 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Pietro Satriano	director	C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
David W. Mccreight	director	C/O URBAN OUTFITTERS, INC., 5000 SOUTH BROAD STREET, PHILADELPHIA PA 19112
Peter J Bensen	director	MCDONALD'S CORPORATION, 2915 JORIE BOULEVARD, OAK BROOK IL 60523
Robert J. Hombach	director	C/O BAXALTA INCORPORATED, 1200 LAKESIDE DRIVE, BANNOCKBURN IL 60015
Darren C Newberry	officer: SVP	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Charles Joseph Wilson	officer: SVP	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Sona Chawla	director	N56 W17000 RIDGEWOOD DRIVE, MENOMONEE FALLS WI 53051
Diane L Cafritz	officer: SVP & CHRO	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Jill A Livesay	officer: VP, Controller & PAO	CARMAX, INC., 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
John T Standley	director
Alan B. Colberg	director	ASSURANT, INC., ONE CHASE MANHATTAN PLAZA, 41 FL., NEW YORK NY 10005
Marcella Shinder	director	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Jon G Daniels	officer: SVP, CAF	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238