CarMax Inc (KMX)

Net profit margin

Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 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
Net income (ttm) US$ in thousands 500,556 460,958 417,520 403,346 479,204 497,948 453,525 460,795 484,762 575,586 807,444 966,806 1,151,297 1,201,406 1,167,268 1,178,697 746,919 751,908 689,764 626,667
Revenue (ttm) US$ in thousands 26,353,420 25,976,900 25,902,070 25,962,380 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
Net profit margin 1.90% 1.77% 1.61% 1.55% 1.81% 1.87% 1.68% 1.64% 1.63% 1.82% 2.40% 2.88% 3.61% 4.09% 4.48% 5.03% 3.94% 4.01% 3.76% 3.45%

February 28, 2025 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $500,556K ÷ $26,353,420K
= 1.90%

Net profit margin is a key financial ratio that measures the percentage of sales revenue that translates into net income after accounting for all expenses. Analyzing the net profit margin trend of CarMax Inc over the past few years provides insights into the company's profitability efficiency.

Based on the provided data, CarMax Inc's net profit margin has shown fluctuations over the reporting periods. The net profit margin started at 3.45% as of May 31, 2020, and experienced slight increases and decreases until reaching 5.03% by May 31, 2021. This peak was followed by a moderate decline to 1.55% by May 31, 2024, before slightly recovering to 1.90% by February 28, 2025.

The decreasing trend in net profit margin from 5.03% in May 2021 to 1.90% in February 2025 may indicate challenges in controlling costs and maintaining profitability levels relative to sales. Factors such as rising expenses, pricing pressures, or changes in business strategy could contribute to this decline.

It is important for CarMax Inc to closely monitor its cost structure, revenue streams, and operational efficiency to improve its net profit margin in order to sustain long-term profitability and investor confidence. Further analysis and comparison with industry benchmarks would provide additional context to assess the company's financial performance.