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CarMax Asset Turnover

: 0.34 (As of Aug. 2021)
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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. CarMax's Revenue for the three months ended in Aug. 2021 was $7,988 Mil. CarMax's Total Assets for the quarter that ended in Aug. 2021 was $23,643 Mil. Therefore, CarMax's Asset Turnover for the quarter that ended in Aug. 2021 was 0.34.

Asset Turnover is linked to ROE % through Du Pont Formula. CarMax's annualized ROE % for the quarter that ended in Aug. 2021 was 23.73%. It is also linked to ROA % through Du Pont Formula. CarMax's annualized ROA % for the quarter that ended in Aug. 2021 was 4.83%.


CarMax Asset Turnover Historical Data

The historical data trend for CarMax's Asset Turnover 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
Asset Turnover
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.03 1.01 1.00 1.02 0.89

CarMax Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
Asset Turnover 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 0.26 0.25 0.24 0.35 0.34

CarMax Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

CarMax's Asset Turnover for the fiscal year that ended in Feb. 2021 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Feb. 2021 )/( (Total Assets (A: Feb. 2020 )+Total Assets (A: Feb. 2021 ))/ count )
=18950.149/( (21082.182+21541.541)/ 2 )
=18950.149/21311.8615
=0.89

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

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Aug. 2021 )/( (Total Assets (Q: May. 2021 )+Total Assets (Q: Aug. 2021 ))/ count )
=7988.359/( (22832.889+24453.322)/ 2 )
=7988.359/23643.1055
=0.34

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


CarMax  (NYSE:KMX) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

CarMax's annulized ROE % for the quarter that ended in Aug. 2021 is

ROE %**(Q: Aug. 2021 )
=Net Income/Total Stockholders Equity
=1141.068/4809.33
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1141.068 / 31953.436)*(31953.436 / 23643.1055)*(23643.1055/ 4809.33)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.57 %*1.3515*4.9161
=ROA %*Equity Multiplier
=4.83 %*4.9161
=23.73 %

Note: The Net Income data used here is four times the quarterly (Aug. 2021) net income data. The Revenue data used here is four times the quarterly (Aug. 2021) revenue data.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

CarMax's annulized ROA % for the quarter that ended in Aug. 2021 is

ROA %(Q: Aug. 2021 )
=Net Income/Total Assets
=1141.068/23643.1055
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1141.068 / 31953.436)*(31953.436 / 23643.1055)
=Net Margin %*Asset Turnover
=3.57 %*1.3515
=4.83 %

Note: The Net Income data used here is four times the quarterly (Aug. 2021) net income data. The Revenue data used here is four times the quarterly (Aug. 2021) revenue data.

* 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.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


CarMax Asset Turnover Related Terms

Thank you for viewing the detailed overview of CarMax's Asset Turnover 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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