CarMax Inc (KMX)

Gross profit margin

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Gross profit	US$ in thousands	2,713,210	2,800,200	3,287,540	2,379,120	2,722,340
Revenue	US$ in thousands	26,536,000	29,684,900	31,900,400	18,950,100	20,320,000
Gross profit margin		10.22%	9.43%	10.31%	12.55%	13.40%

February 29, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,713,210K ÷ $26,536,000K
= 10.22%

Based on the data provided, CarMax Inc's gross profit margin has shown a downward trend over the past five fiscal years. The gross profit margin decreased from 13.40% in February 2020 to 10.22% in February 2024. This suggests that the company's cost of goods sold has been increasing at a faster rate than its revenues during this period. A declining gross profit margin can indicate potential pressures on profitability, such as rising production costs or competitive pricing strategies. CarMax Inc may need to closely monitor its cost structure and pricing strategies to improve its gross profit margin in the future and maintain sustainable profitability levels.