CarMax Inc (KMX)

Gross profit margin

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Gross profit (ttm)	US$ in thousands	2,713,209	2,737,997	2,701,822	2,742,202	2,800,203	2,900,213	3,160,085	3,238,424	3,287,542	3,217,922	3,012,792	2,949,451	2,379,125	2,410,613	2,392,830	2,334,140	2,722,340	2,648,861	2,604,451	2,561,634
Revenue (ttm)	US$ in thousands	26,536,040	26,631,930	26,989,350	28,060,310	29,684,870	31,649,080	33,670,880	33,514,440	31,900,420	29,377,980	26,035,160	23,418,970	18,950,150	18,748,380	18,353,470	18,182,450	20,319,990	19,676,100	19,181,940	18,746,830
Gross profit margin		10.22%	10.28%	10.01%	9.77%	9.43%	9.16%	9.39%	9.66%	10.31%	10.95%	11.57%	12.59%	12.55%	12.86%	13.04%	12.84%	13.40%	13.46%	13.58%	13.66%

February 29, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,713,209K ÷ $26,536,040K
= 10.22%

The gross profit margin of CarMax Inc has shown a fluctuating trend over the past few quarters. The margin has ranged from a low of 9.16% in November 2022 to a high of 13.66% in May 2019. Overall, the gross profit margin has generally been above 10%, indicating that the company has been able to effectively manage its cost of goods sold relative to its revenue.

There was a noticeable decline in the margin from August 2021 to February 2022, which reached its lowest point at 9.16%. However, the margin has shown signs of improvement since then, reaching 10.22% in the most recent quarter ending February 2024.

It is important for investors and analysts to monitor the gross profit margin closely as it provides insights into the company's pricing strategy, production efficiency, and ability to control costs. While the recent uptick in the margin is a positive sign, continued monitoring of this key financial metric will be essential to assess CarMax Inc's operational performance going forward.