CarMax (FRA:XA4) ROCE % : 4.34% (As of Feb. 2024)

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What is CarMax ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. CarMax's annualized ROCE % for the quarter that ended in Feb. 2024 was 4.34%.

CarMax ROCE % Historical Data

The historical data trend for CarMax's ROCE % 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.

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CarMax ROCE % Chart

CarMax Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

ROCE %

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8.83

6.58

8.46

4.53

5.70

CarMax Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROCE %	Get a 7-Day Free Trial															3.58	7.77	5.48	5.00	4.34

CarMax ROCE % Calculation

CarMax's annualized ROCE % for the fiscal year that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Feb. 2024 )		(A: Feb. 2023 )		(A: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Feb. 2024 )		(A: Feb. 2023 )		(A: Feb. 2024 )
	=	1302.477	/	( ( (24454.675 - 1810.382)	+	(25211.431 - 2143.492) )	/ 2 )
	=	1302.477	/	( (22644.293	+	23067.939)	/ 2 )
	=	1302.477	/	22856.116
	=	5.70 %

CarMax's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	1004.292	/	( ( (25108.083 - 1924.912)	+	(25211.431 - 2143.492) )	/ 2 )
	=	1004.292	/	( ( 23183.171	+	23067.939 )	/ 2 )
	=	1004.292	/	23125.555
	=	4.34 %

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

CarMax (FRA:XA4) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

CarMax ROCE % Related Terms

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CarMax (FRA:XA4) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » CarMax Inc (FRA:XA4) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

KMX:USA KMX:Mexico

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.

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