Current Ratio
Higher than 90% of Consumer Cyclical sector peers
Updated 80h ago
Sector Performance
90th percentileKMX
2.70x
Sector Median
1.44x
Sector Avg
2.69x
Deep Analysis
The current ratio of 2.70x means CarMax has $2.70 in current assets for every $1 of current liabilities, indicating a strong ability to cover short-term obligations.
This ratio sits far above the consumer cyclical sector median of 1.44x, placing CarMax in the 90th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change shows a +22.7% increase from 2.20x to 2.70x. The combination of an already high current ratio and a sharp quarterly improvement implies minimal short-term liquidity risk, which is generally favorable. However, this metric directly contradicts the overall CAUTIOUS verdict on the stock, as a high and rising current ratio typically signals financial stability rather than caution.
Frequently Asked Questions
What does the Current Ratio tell investors about KMX?
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
How is the Current Ratio calculated?
Current Ratio is calculated as: Current Assets / Current Liabilities.
How does KMX's Current Ratio compare to its sector?
KMX's Current Ratio of 2.70x compares to a Consumer Cyclical sector median of 1.44x, placing it in the 90th percentile.
Who are KMX's closest peers by Current Ratio?
The closest Consumer Cyclical peers by Current Ratio include: URBN (1.48x), BROS (1.33x), SHAK (1.69x), MELI (1.16x), CHPT (1.15x).
The Formula
Current Assets / Current Liabilities
Why It Matters
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
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2.70x
Sector Median
1.44x
Sector Avg
2.69x
How KMX's Current Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.