GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » CarMax Inc (NYSE:KMX) » Definitions » ROC (Joel Greenblatt) %

KMX (CarMax) ROC (Joel Greenblatt) % : 21.74% (As of Aug. 2024)


View and export this data going back to 1997. Start your Free Trial

What is CarMax ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. CarMax's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2024 was 21.74%.

The historical rank and industry rank for CarMax's ROC (Joel Greenblatt) % or its related term are showing as below:

KMX' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 13.24   Med: 24.63   Max: 29.69
Current: 18.97

During the past 13 years, CarMax's highest ROC (Joel Greenblatt) % was 29.69%. The lowest was 13.24%. And the median was 24.63%.

KMX's ROC (Joel Greenblatt) % is ranked better than
65.59% of 1302 companies
in the Vehicles & Parts industry
Industry Median: 13.015 vs KMX: 18.97

CarMax's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -12.00% per year.


CarMax ROC (Joel Greenblatt) % Historical Data

The historical data trend for CarMax's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart

CarMax Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.78 22.19 24.24 13.24 19.01

CarMax Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
ROC (Joel Greenblatt) % 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 18.12 16.76 14.66 22.44 21.74

Competitive Comparison of CarMax's ROC (Joel Greenblatt) %

For the Auto & Truck Dealerships subindustry, CarMax's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where CarMax's ROC (Joel Greenblatt) % falls into.



CarMax ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

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.

So ROC (Joel Greenblatt) % of CarMax for the quarter that ended in Aug. 2024 can be restated 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 %

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


CarMax  (NYSE:KMX) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


CarMax ROC (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of CarMax's ROC (Joel Greenblatt) % 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.
Executives
Jill A Livesay officer: VP, Controller & PAO CARMAX, INC., 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Mohammad Shamim officer: SVP and CIO 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Charles Joseph Wilson officer: SVP 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Enrique N Mayor-mora officer: SVP & CFO 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
William D Nash officer: EVP, HR & Admin Services 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Jon G Daniels officer: SVP, CAF 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Diane L Cafritz officer: SVP & CHRO 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Darren C Newberry officer: SVP 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
James Lyski officer: SVP & Chief Marketing Officer CARMAX, 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Ronald E Blaylock director
Edwin J Hill officer: SVP 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Eric M Margolin officer: SVP, Gen. Counsel & Secretary CARMAX, 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Thomas J Folliard officer: Executive Vice President 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Reedy Thomas W Jr officer: SVP & CFO 12800 TUCKHOE CREEK PARKWAY, RICHMOND VA 23238
Mark F Oneil director C/O CARMAX, INC., 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238