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CarMax (LTS:0HTQ) 5-Year ROIIC % : -7.78% (As of Feb. 2024)


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What is CarMax 5-Year ROIIC %?

5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year. CarMax's 5-Year ROIIC % for the quarter that ended in Feb. 2024 was -7.78%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for CarMax's 5-Year ROIIC % or its related term are showing as below:

LTS:0HTQ's 5-Year ROIIC % is ranked worse than
73.6% of 1216 companies
in the Vehicles & Parts industry
Industry Median: 3.855 vs LTS:0HTQ: -7.78

CarMax 5-Year ROIIC % Historical Data

The historical data trend for CarMax's 5-Year ROIIC % 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 5-Year ROIIC % Chart

CarMax Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
5-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.47 -3.10 -0.08 -8.59 -7.78

CarMax Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
5-Year ROIIC % 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 - - -7.78 - -

Competitive Comparison of CarMax's 5-Year ROIIC %

For the Auto & Truck Dealerships subindustry, CarMax's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's 5-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where CarMax's 5-Year ROIIC % falls into.



CarMax 5-Year ROIIC % Calculation

CarMax's 5-Year ROIIC % for the quarter that ended in Feb. 2024 is calculated as:

5-Year ROIIC %=5-Year Incremental Net Operating Profit After Taxes (NOPAT)**/5-Year Incremental Invested Capital**
=( -153.6515211 (Feb. 2024) - 422.550587 (Feb. 2019) )/( 25164.976 (Feb. 2024) - 17755.77 (Feb. 2019) )
=-576.2021081/7409.206
=-7.78%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


CarMax  (LTS:0HTQ) 5-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


CarMax 5-Year ROIIC % Related Terms

Thank you for viewing the detailed overview of CarMax's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


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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