KMXCAUTIOUS

KMX Debt-to-Equity Ratio Analysis

2.96x

Higher than 91% of Consumer Cyclical sector peers

Updated 581h ago·SEC filings & market data

Key Takeaway

CarMax's debt-to-equity ratio of 2.96x means the company holds $2.96 of debt for every $1 of shareholder equity, a standard gauge of financial leverage.

Sector Performance

91th percentile

KMX

2.96x

Sector Median

0.47x

Sector Avg

1.80x

Prior Period

3.06x(Jun 2026)

↑ Improving

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Deep Analysis

CarMax's debt-to-equity ratio of 2.96x means the company holds $2.96 of debt for every $1 of shareholder equity, a standard gauge of financial leverage.

That is far above the consumer cyclical sector median of 0.47x, placing the company in the 88th percentile of peers, so only a small set of competitors carries more debt. The year-over-year change is not available, but the ratio fell 3.3% quarter-over-quarter from 3.06x to 2.96x, showing a recent reduction in leverage. Despite that small decline, the absolute level remains very high, indicating CarMax relies heavily on borrowed funds to run its business. This combination of a high level with a modest downward trend implies elevated financial risk, though the quarterly drop provides a slight counterbalance. Overall, this metric supports the cautious verdict on the stock, as the debt load sits well outside the typical range for its sector.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about KMX?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does KMX's Debt-to-Equity Ratio compare to its sector?

KMX's Debt-to-Equity Ratio of 2.96x compares to a Consumer Cyclical sector median of 0.47x, placing it in the 91th percentile.

Who are KMX's closest peers by Debt-to-Equity Ratio?

The closest Consumer Cyclical peers by Debt-to-Equity Ratio include: AMZN (0.47x), ROL (0.49x), BOOT (0.59x), CAVA (0.62x), BWA (0.69x).

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Learn More About Debt-to-Equity Ratio

How to Spot a Debt Problem Before It Hits the Stock Price

Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.