CarMax Inc (KMX)

Net profit margin

Feb 28, 2025 Feb 29, 2024 Feb 28, 2023 Feb 28, 2022 Feb 28, 2021
Net income US$ in thousands 500,556 479,204 484,762 1,151,300 746,919
Revenue US$ in thousands 26,353,400 26,536,000 29,684,900 31,900,400 18,950,100
Net profit margin 1.90% 1.81% 1.63% 3.61% 3.94%

February 28, 2025 calculation

Net profit margin = Net income ÷ Revenue
= $500,556K ÷ $26,353,400K
= 1.90%

CarMax Inc's net profit margin has shown a slight decline over the past five years, ranging from 3.94% on February 28, 2021, to 1.90% on February 28, 2025. The decreasing trend indicates that the company's profitability in relation to its revenue has been weakening over this period. A lower net profit margin could imply higher operating expenses, lower pricing power, or inefficiencies in cost management. It is important for CarMax Inc to closely monitor and address the factors contributing to this decline to sustain and improve its overall financial performance in the future.