KMX Quick Ratio Analysis

The quick ratio measures a company’s most liquid assets—cash, marketable securities, and receivables—against its current liabilities, and CarMax’s 0.18x means it has only $0.18 of those liquid assets for every $1 of short-term obligations due.

That is far below the sector median of 0.69x, placing CarMax in the 10th percentile among Consumer Cyclical peers, indicating unusually low liquidity relative to similar companies. Trend data are not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and the last 8 quarters show no historical values. The combination of a very low level with an unknown trend means investors cannot confirm whether liquidity is improving or worsening, leaving only the current snapshot of thin short-term coverage. This low ratio implies elevated near-term risk if cash flows slow, though CarMax’s inventory-heavy model may still generate cash through sales. The 0.18x level directly supports the overall CAUTIOUS verdict, as it signals a weaker liquidity buffer than most peers.

Frequently Asked Questions

Closest Sector Peers