Name: Debt to Equity

Definition: Debt to equity shows how much debt the company uses compared to the amount invested by its owners. It’s a bit like comparing your mortgage to your house down payment. Higher ratios suggest the business is comfortable borrowing to grow — which can boost returns in good times, but adds risk if conditions worsen. Lower ratios signal a more conservative, steady approach.

Interpretation:
• In '2022', KMX's debt to equity was 3.68, showing the balance between debt financing and shareholders' equity. Industry average for Retail-Auto Dealers and Gas Stations in '2022' stood at 1.62.
• In '2023', KMX's debt to equity was 3.37, showing the balance between debt financing and shareholders' equity. The decrease since '2022' reflects improving financial health. Industry average for Retail-Auto Dealers and Gas Stations in '2023' stood at 1.80. Industry average increased by 0.18 compared to previous year.
• In '2024', KMX's debt to equity was 3.18, showing the balance between debt financing and shareholders' equity. The decrease since '2023' reflects improving financial health. Industry average for Retail-Auto Dealers and Gas Stations in '2024' stood at 2.39. Industry average increased by 0.58 compared to previous year.
• In '2025', KMX's debt to equity was 3.08, showing the balance between debt financing and shareholders' equity. The decrease since '2024' reflects improving financial health. Industry average for Retail-Auto Dealers and Gas Stations in '2025' stood at 3.08. Industry average increased by 0.69 compared to previous year.
Overall, KMX's debt to equity has consistently declined during the past 4 years.

Formula: Debt to Equity = Total Debt / Shareholders' Equity

Good Range: Below 1.0 is conservative; 1-2 is common depending on industry.