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CarMax Inventory-to-Revenue

: 0.46 (As of Aug. 2021)
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Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. CarMax's Total Inventories for the quarter that ended in Aug. 2021 was $3,677 Mil. CarMax's Revenue for the three months ended in Aug. 2021 was $7,988 Mil. CarMax's Inventory-to-Revenue for the quarter that ended in Aug. 2021 was 0.46.

CarMax's Inventory-to-Revenue for the quarter that ended in Aug. 2021 increased from May. 2021 (0.42) to May. 2021 (0.46)

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. CarMax's Days Inventory for the three months ended in Aug. 2021 was 46.78.

Total Inventories can be measured by Days Sales of Inventory (DSI). CarMax's days sales of inventory (DSI) for the three months ended in Aug. 2021 was 42.00.

Inventory Turnover measures how fast the company turns over its inventory within a year. CarMax's Inventory Turnover for the quarter that ended in Aug. 2021 was 1.95.


CarMax Inventory-to-Revenue Historical Data

The historical data trend for CarMax's Inventory-to-Revenue 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
Inventory-to-Revenue
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.13 0.14 0.14 0.13 0.16

CarMax Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
Inventory-to-Revenue 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 0.44 0.54 0.58 0.42 0.46

Competitive Comparison

For the Auto & Truck Dealerships subindustry, CarMax's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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 Inventory-to-Revenue Distribution

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

* The bar in red indicates where CarMax's Inventory-to-Revenue falls into.



CarMax Inventory-to-Revenue Calculation

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

CarMax's Inventory-to-Revenue for the fiscal year that ended in Feb. 2021 is calculated as

Inventory-to-Revenue (A: Feb. 2021 )
=Total Inventories / Revenue
=( (Total Inventories (A: Feb. 2020 ) + Total Inventories (A: Feb. 2021 )) / count ) / Revenue (A: Feb. 2021 )
=( (2846.416 + 3157.159) / 2 ) / 18950.149
=3001.7875 / 18950.149
=0.16

CarMax's Inventory-to-Revenue for the quarter that ended in Aug. 2021 is calculated as

Inventory-to-Revenue (Q: Aug. 2021 )
=Total Inventories / Revenue
=( (Total Inventories (Q: May. 2021 ) + Total Inventories (Q: Aug. 2021 )) / count ) / Revenue (Q: Aug. 2021 )
=( (3248.849 + 4105.458) / 2 ) / 7988.359
=3677.1535 / 7988.359
=0.46

* 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  (NYSE:KMX) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

CarMax's Days Inventory for the three months ended in Aug. 2021 is calculated as:

Days Inventory=Total Inventories (Q: Aug. 2021 )/Cost of Goods Sold (Q: Aug. 2021 )*Days in Period
=3677.1535/7172.875*365 / 4
=46.78

2. Total Inventories can be measured by Days Sales of Inventory (DSI).

CarMax's Days Sales of Inventory for the three months ended in Aug. 2021 is

Days Sales of Inventory (DSI)=Total Inventories (Q: Aug. 2021 )/Revenue (Q: Aug. 2021 )*Days in Period
=3677.1535/7988.359*365 / 4
=42.00

3. Inventory Turnover measures how fast the company turns over its inventory within a year.

CarMax's Inventory Turnover for the quarter that ended in Aug. 2021 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Aug. 2021 ) / Total Inventories (Q: Aug. 2021 )
=7172.875 / 3677.1535
=1.95

* 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 Inventory-to-Revenue Related Terms

Thank you for viewing the detailed overview of CarMax's Inventory-to-Revenue 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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