Motley Fool Money 1 Key Metric for Earnings Season
Apr 11, 2023
Bill Mann, a Motley Fool analyst, discusses CarMax's strong earnings and how inventory management is crucial in today's market. He highlights the telltale signs of financial health visible in CarMax's report. Alison Southwick dives into the chaos of tax season, humorously pointing out the complexities of the tax filing process in the U.S. She advocates for a simpler, more efficient return-free system and underscores the struggles faced by low-income taxpayers. Together, they provide insightful commentary on current economic trends and financial resilience.
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Used Car Price Example
- Bill Mann tried to buy a used Subaru Outback for his daughter.
- The used car's price was only $3,000 less than a new one.
CarMax's "Tell"
- CarMax's "other sales and revenue", mostly protection plans, reveals pricing changes.
- This line item's percentage growth relative to total sales indicates better performance.
Key Metric for Earnings Season
- Bill Mann advises focusing on inventory levels during the upcoming earnings season.
- This metric will reveal how well companies are managing post-pandemic supply chain disruptions.