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CarMax (LTS:0HTQ) EBIT : $1,402 Mil (TTM As of Aug. 2024)


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What is CarMax EBIT?

CarMax's earnings before interest and taxes (EBIT) for the three months ended in Aug. 2024 was $399 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Aug. 2024 was $1,402 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. CarMax's annualized ROC % for the quarter that ended in Aug. 2024 was -0.59%. CarMax's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2024 was 21.74%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. CarMax's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Aug. 2024 was 4.37%.


CarMax EBIT Historical Data

The historical data trend for CarMax's EBIT 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 EBIT Chart

CarMax Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,602.09 1,365.54 1,815.24 1,067.50 1,405.05

CarMax Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
EBIT Get a 7-Day Free Trial 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 341.87 312.02 270.85 420.30 398.57

Competitive Comparison of CarMax's EBIT

For the Auto & Truck Dealerships subindustry, CarMax's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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's EV-to-EBIT Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where CarMax's EV-to-EBIT falls into.



CarMax EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Aug. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,402 Mil.

* 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  (LTS:0HTQ) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

CarMax's annualized ROC % for the quarter that ended in Aug. 2024 is calculated as:

ROC % (Q: Aug. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: May. 2024 ) + Invested Capital (Q: Aug. 2024 ))/ count )
=-199.736 * ( 1 - 25.32% )/( (25630.746 + 25245.122)/ 2 )
=-149.1628448/25437.934
=-0.59 %

where

Invested Capital(Q: May. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=27242.094 - 1392.417 - ( 218.931 - max(0, 1985.895 - 4970.307+218.931))
=25630.746

Invested Capital(Q: Aug. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=27295.818 - 1526.029 - ( 524.667 - max(0, 2155.804 - 4859.056+524.667))
=25245.122

Note: The Operating Income data used here is four times the quarterly (Aug. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

CarMax's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Aug. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: May. 2024  Q: Aug. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1594.26/( ( (4243.779 + max(3358.959, 0)) + (4258.872 + max(2808.36, 0)) )/ 2 )
=1594.26/( ( 7602.738 + 7067.232 )/ 2 )
=1594.26/7334.985
=21.74 %

where Working Capital is:

Working Capital(Q: May. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(212.37 + 3772.885 + 766.121) - (1392.417 + 0 + 0)
=3358.959

Working Capital(Q: Aug. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(228.112 + 3397.746 + 708.531) - (1526.029 + 0 + 0)
=2808.36

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Aug. 2024) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

CarMax's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Aug. 2024 )
=1401.735/32047.243
=4.37 %

* 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 EBIT Related Terms

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CarMax Business Description

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 around 250 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 (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.

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