Latest: Q2 FY27 · from the cash-flow statements filed with the SEC
Free cash flow$806M in Q2 FY27 · $1.1B over twelve months
Operating cash flow$883M
Capital spending−$77.1M
Free cash flow+$806M
Cash / net income5.3×
Cash conversion cycle41 days
Analysis
In Q2 FY27, CarMax generated $883M of operating cash flow and spent $77.1M on capital projects, leaving free cash flow of $806M. That is $152M more than in Q2 FY26 ($654M).
Over the twelve months to Aug 31, 2026, operating cash flow was $1.6B; the largest uses were other financing ($1.3B), capital spending ($453M), buybacks ($261M); besides operations, cash came from other investing ($15.1M), asset & business sales ($323K); the cash balance fell by $389M.
Operating cash flow was $883M against net income of $165M — 5.3× profit, cash ran ahead of reported earnings. The largest differences: inventory +$208M, depreciation & amortization +$95.2M, receivables +$40.0M.
Its cash conversion cycle was 41 days (receivables 3 + inventory 51 − payables 13).
Free cash flow
Operating cash flow less capital spending.Latest (Q2 FY27): Operating cash flow $883M, Capital spending $77.1M.
Capital allocation, year by year
Over these 5 years operating cash flow totalled $1.6B; the largest uses were operating cash flow ($2.5B) and capital spending ($2.2B). Cash-flow statements as filed.
Cash runway and the debt wall
Cash & investments$171M
Debt$16.8B
Net debt$16.6B
Due within a year$17.7M
CarMax funds itself: free cash flow was $1.1B over the last twelve months, and $171M of cash and investments stands against $16.8B of debt ($17.7M due within a year, 9.6× covered by cash).
Where the cash came from and went
From profit to cash
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
Quarter
Receivable days
Inventory days
Payable days
Cash conversion cycle
Q2 FY27
3
51
13
41
Q1 FY27
3
53
14
41
Q4 FY26
3
61
17
47
Q3 FY26
3
55
16
42
Q2 FY26
3
53
15
41
Q1 FY26
2
52
14
41
Q4 FY25
3
64
17
51
Q3 FY25
3
58
16
45
Every quarter
Quarter
Operating cash flow
Capital spending
Buybacks
Net borrowing (+) / repaid (−)
Shares issued
Cash drawn (+) / kept (−)
Free cash flow
Q2 FY27
$883M
−$77.1M
−$313K
−$4.4M
$83K
−$44.5M
$806M
Q1 FY27
$17.6M
−$103M
−$2.3M
−$4.1M
—
−$8.5M
−$85.7M
Q4 FY26
−$554M
−$133M
−$54.3M
−$4.0M
−$1K
$50.0M
−$687M
Q3 FY26
$1.3B
−$140M
−$204M
−$3.9M
—
$392M
$1.1B
Q2 FY26
$785M
−$131M
−$181M
−$3.7M
$20K
−$316M
$654M
Q1 FY26
$300M
−$137M
−$204M
−$3.4M
$8.3M
−$28.9M
$163M
Q4 FY25
$146M
−$128M
−$98.9M
−$3.4M
$38.4M
$15.5M
$18.8M
Q3 FY25
−$23.4M
−$127M
−$116M
−$4.1M
$5.1M
$277M
−$151M
CarMax: income statement and cash flow
CarMax, Q2 FY27: revenue $7.9B (+20% year over year), operating margin 2.8%. The chart follows the revenue to costs, profit and cash.
Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.