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KMXCarMax, Inc.

Interest Coverage Ratio: 0.06x

popular:market cap|pe ratio|revenue|price history|total return

Is the interest coverage ratio high or low?

The interest coverage ratio of 0.06x is 85% below its 5-year average of 0.40x, near the low end of its 5-year range (-5.91x–16.17x).

As of Sunday, June 28, 2026. 115.08% above its 12-month average of -0.41x.

Interest Expense|Total Debt|Debt/Equity|Operating Margin|All Metrics
Interest Coverage

KMX Interest Coverage Ratio

0.06x

Reported quarterly interest coverage; no daily interpolation.

-99.62% 5Y
KMX Interest Coverage Ratio

KMX Average Interest Coverage Ratio Chart

KMX Interest Coverage Ratio

KMX Current vs Average Interest Coverage Ratio Chart

KMX Interest Coverage Ratio Metrics

INTEREST COVERAGE RATIO

0.06x

INTEREST COVERAGE RATIO AVG TTM

-0.41x

INTEREST COVERAGE RATIO AVG 3Y

-0.33x

INTEREST COVERAGE RATIO AVG 5Y

-0.82x

INTEREST COVERAGE RATIO AVG 10Y

4.65x

INTEREST COVERAGE RATIO AVG 15Y

7.72x

INTEREST COVERAGE RATIO AVG 20Y

N/A

CURRENT VS TTM AVG

+115.08%

CURRENT VS 3Y AVG

+118.88%

CURRENT VS 5Y AVG

+107.56%

CURRENT VS 10Y AVG

-98.66%

CURRENT VS 15Y AVG

-99.19%

CURRENT VS 20Y AVG

N/A

KMX Competitors' Interest Coverage Ratio

NAMEMARKET CAPINTEREST COVERAGE RATIOTTM3Y5Y
CarMax, Inc. (KMX)$7.49B0.06x-0.41x-0.33x-0.82x
Etsy, Inc. (ETSY)vs ›$7.41B19.88x23.71x22.45x24.91x
Mohawk Industries, Inc. (MHK)vs ›$7.30B28.63x21.48x15.89x16.62x
Chewy, Inc. (CHWY)vs ›$7.68B55.28x37.84x37.84x32.53x
The Gap, Inc. (GAP)vs ›$7.28B48.48x30.63x22.49x18.08x
LKQ Corporation (LKQ)vs ›$6.89B4.85x4.71x9.01x10.93x
Macy's, Inc. (M)vs ›$6.83B10.62x9.26x6.92x8.05x
Crocs, Inc. (CROX)vs ›$6.35B10.05x9.70x8.04x15.91x
The Gap, Inc. (GPS)vs ›$9.21BN/A9.84x9.84x8.02x
CAVA Group, Inc. (CAVA)vs ›$9.71BN/AN/AN/AN/A

Financial Health Indicators

Interest Coverage

0.1x

Debt/Equity

3.02

Current Ratio

2.20

Formula: Interest Coverage = EBIT / Interest Expense

Reference ranges:

  • < 1.5x: EBIT is less than 1.5 times interest expense
  • 1.5x - 3x: EBIT is between 1.5 and 3 times interest expense
  • 3x - 5x: EBIT is between 3 and 5 times interest expense
  • > 5x: EBIT is more than 5 times interest expense

Note: Interest coverage should be compared with historical interest expense, operating income, and industry capital structure.

Interest Coverage Ratio Formula & Definition

Interest Coverage = EBIT / Interest Expense

The interest coverage ratio measures operating earnings relative to interest expense.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

Interest Coverage Ratio FAQ

What is the interest coverage ratio for CarMax, Inc. (KMX)?
The interest coverage ratio for KMX stock is 0.06x.
Is CarMax, Inc.'s interest coverage ratio high or low?
The interest coverage ratio of 0.06x is 85% below its 5-year average of 0.40x, near the low end of its 5-year range (-5.91x–16.17x).
What is the TTM average interest coverage ratio for CarMax, Inc. (KMX)?
The TTM average interest coverage ratio for KMX stock is -0.41x.
What is the 3Y average interest coverage ratio for CarMax, Inc. (KMX)?
The 3Y average interest coverage ratio for KMX stock is -0.33x.
What is the 5Y average interest coverage ratio for CarMax, Inc. (KMX)?
The 5Y average interest coverage ratio for KMX stock is -0.82x.
What is the 10Y average interest coverage ratio for CarMax, Inc. (KMX)?
The 10Y average interest coverage ratio for KMX stock is 4.65x.
What is the 15Y average interest coverage ratio for CarMax, Inc. (KMX)?
The 15Y average interest coverage ratio for KMX stock is 7.72x.

KMX Interest Coverage Ratio History

DATEINTEREST COVERAGE RATIO
2026-05-310.06x
2026-02-28-1.17x
2025-11-30-0.62x
2025-08-31-0.52x
2025-05-310.19x
2025-02-28-0.46x
2024-11-30-0.16x
2024-08-31-0.23x
2024-05-31-0.06x
2024-02-29-4.72x
2023-11-30-3.08x
2023-05-313.20x
2023-02-28-4.79x
2022-11-30-5.91x
2022-08-31-2.50x
2022-05-313.01x
2022-02-28-1.33x
2021-11-304.73x
2021-08-316.26x
2021-05-3116.17x
2021-02-283.39x
2020-11-306.81x
2020-08-319.99x
2020-05-31-6.38x
2020-02-293.14x
2019-11-303.16x
2019-08-317.44x
2019-05-3111.49x
2019-02-2814.81x
2018-11-305.82x
2018-08-318.21x
2018-05-3110.12x
2018-02-2812.87x
2017-11-305.35x
2017-08-3111.82x
2017-05-3114.58x
2017-02-2818.58x
2016-11-306.44x
2016-08-3112.89x
2016-05-3117.36x
2016-02-2920.93x
2015-11-308.86x
2015-08-3125.58x
2015-05-3127.31x
2015-02-28103.04x
2014-11-3013.58x
2014-08-3122.55x
2014-05-3124.78x
2014-02-28173.14x
2013-11-309.42x
2013-08-3119.53x
2013-05-3120.04x
2013-02-28-6.78x
2012-11-302.06x
2012-08-3113.90x
2012-05-3115.76x
2012-02-293.65x
2011-11-309.27x
2011-08-3114.70x
2011-05-3116.56x
2011-02-28105.82x
2010-12-272.42x
2010-09-1087.67x
2010-05-311484.11x
2010-02-28-304.62x
2009-11-3075.26x
2009-08-3171.53x
2009-05-3165.68x
2009-04-0932.71x
2008-11-30-11.96x
2008-08-3120.83x
2008-05-3119.31x

Related Metrics

Interest ExpenseTotal DebtDebt/EquityOperating MarginAll Metrics

About CarMax, Inc.

CarMax, Inc., together with its associated entities, functions as a prominent purveyor of previously owned automobiles across the United States. Its business operations are strategically structured into two principal divisions: CarMax Sales Operations and CarMax Auto Finance. Through its retail offerings, the company provides an extensive selection of pre-owned vehicles, including various domestic, imported, and luxury models, in addition to hybrid and electric options. Customers also have the opportunity to purchase extended protection plans at the time of their vehicle acquisition. Separately, CarMax sells older, higher-mileage vehicles—typically around ten years old with over 100,000 miles—via wholesale auctions. Furthermore, CarMax delivers reconditioning and repair services for its vehicles. For its retail clients, the company facilitates a range of financing alternatives designed to accommodate diverse credit profiles, managed both by its internal CarMax Auto Finance segment and through arrangements with various external financial institutions. As of February 28, 2022, CarMax operated a network comprising approximately 230 retail locations specializing in used cars. Founded in 1993, CarMax, Inc. maintains its corporate headquarters in Richmond, Virginia.

Richmond, VA
30,048 employees
www.carmax.com
Consumer Cyclical / Auto - Dealerships
Sector
Consumer Cyclical
Industry
Auto - Dealerships
CEO
Keith Barr
View full financials