|Day's range||8.90 - 8.90|
Carvana is trying to get out from under an onerous debt pile, but lenders seem reluctant to play along.
RICHMOND, Va., March 23, 2023--CarMax, Inc. (NYSE:KMX) will report its financial results for the fourth quarter ended February 28, 2023 before the market opens on April 11, 2023, and it will host a conference call with investors at 9:00 a.m. ET to discuss these results.
Whether you believe in Carvana's (NYSE: CVNA) potential or think it's doomed, most investors are aware it has a serious cash burn problem and that its growth has come to a crashing halt. Let's explain Carvana's interest expense problem and compare it to rival CarMax (NYSE: KMX), which has more than twice the debt but a small fraction of the interest expense concern. Let's first look at a graph that emphasizes not only how quickly Carvana's interest expense has soared but compares it to cash and cash equivalents and also shows why it's worse than it looks.