CarMax Gross Profit vs. Total Debt
| 0HTQ Stock | 85.15 0.15 0.18% |
Gross Profit | First Reported 1997-05-31 | Previous Quarter 760.5 M | Current Value 743.7 M | Quarterly Volatility 241.4 M |
For CarMax profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CarMax to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CarMax Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CarMax's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CarMax Inc over time as well as its relative position and ranking within its peers.
CarMax |
CarMax Inc Total Debt vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CarMax's current stock value. Our valuation model uses many indicators to compare CarMax value to that of its competitors to determine the firm's financial worth. CarMax Inc is number one stock in gross profit category among its peers. It also is the top company in total debt category among its peers making up about 6.97 of Total Debt per Gross Profit. At this time, CarMax's Gross Profit is comparatively stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CarMax's earnings, one of the primary drivers of an investment's value.CarMax Total Debt vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
CarMax |
| = | 2.8 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
CarMax |
| = | 19.53 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
CarMax Total Debt vs Competition
CarMax Inc is the top company in total debt category among its peers. Total debt of Industrials industry is presently estimated at about 163.04 Billion. CarMax retains roughly 19.53 Billion in total debt claiming about 12% of equities under Industrials industry.
CarMax Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CarMax, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CarMax will eventually generate negative long term returns. The profitability progress is the general direction of CarMax's change in net profit over the period of time. It can combine multiple indicators of CarMax, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 59.3 M | 62.2 M | |
| Operating Income | 942.2 M | 623.2 M | |
| Income Before Tax | 641.6 M | 585 M | |
| Total Other Income Expense Net | -300.6 M | -285.6 M | |
| Net Income | 479.2 M | 396.4 M | |
| Income Tax Expense | 162.4 M | 188.5 M | |
| Net Income Applicable To Common Shares | 888.4 M | 849.3 M | |
| Change To Netincome | 386.2 M | 404.6 M |
CarMax Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CarMax. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CarMax position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CarMax's important profitability drivers and their relationship over time.
Use CarMax in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CarMax position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CarMax will appreciate offsetting losses from the drop in the long position's value.CarMax Pair Trading
CarMax Inc Pair Trading Analysis
The ability to find closely correlated positions to CarMax could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CarMax when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CarMax - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CarMax Inc to buy it.
The correlation of CarMax is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CarMax moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CarMax Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CarMax can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your CarMax position
In addition to having CarMax in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Consumer Staples ETFs Thematic Idea Now
Consumer Staples ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Consumer Staples ETFs theme has 13 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumer Staples ETFs Theme or any other thematic opportunities.
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Additional Tools for CarMax Stock Analysis
When running CarMax's price analysis, check to measure CarMax's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CarMax is operating at the current time. Most of CarMax's value examination focuses on studying past and present price action to predict the probability of CarMax's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CarMax's price. Additionally, you may evaluate how the addition of CarMax to your portfolios can decrease your overall portfolio volatility.