KMXCAUTIOUS

KMX Current Ratio Analysis

2.70x

Higher than 90% of Consumer Cyclical sector peers

Updated 582h ago·SEC filings & market data

Key Takeaway

The current ratio measures a company’s ability to cover short-term obligations with short-term assets; a value of 2.70x means CarMax has $2.70 in current assets for every $1 of current liabilities.

Sector Performance

90th percentile

KMX

2.70x

Sector Median

1.44x

Sector Avg

3.21x

Prior Period

2.20x(Jun 2026)

↑ Improving

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Deep Analysis

The current ratio measures a company’s ability to cover short-term obligations with short-term assets; a value of 2.70x means CarMax has $2.70 in current assets for every $1 of current liabilities.

This sits well above the sector median of 1.44x for Consumer Cyclical peers, placing CarMax in the 89th percentile. Trend data are not available: the year-over-year change is N/A and the quarter-over-quarter change is N/A, with only the single 2.70x figure reported. Because the level is strong but the trend is unknown, the main risk is uncertainty about whether this liquidity cushion is improving or deteriorating. The high absolute ratio offers short-term financial flexibility, which reduces immediate default risk, but the lack of trend evidence limits confidence in its sustainability. This metric supports the overall CAUTIOUS verdict, as a solid liquidity position alone does not offset the broader concerns that drive that cautious stance.

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), ROST (1.54x), AEO (1.55x), SE (1.58x), PVH (1.68x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

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.