CarMax Inc (KMX)

Net 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
Net income (ttm)	US$ in thousands	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	888,433	866,055	883,210	870,501
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
Net profit margin		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%	4.37%	4.40%	4.60%	4.64%

February 29, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $479,204K ÷ $26,536,040K
= 1.81%

The net profit margin of CarMax Inc has shown some fluctuations over the period of the past few quarters. The trend indicates that the net profit margin has decreased from a high of 5.03% in the quarter ending August 31, 2021, to a low of 1.81% in the most recent quarter ending February 29, 2024. This suggests a declining trend in the company's profitability over this period.

The declining trend in net profit margin could be a result of several factors such as increasing operating expenses, changes in revenue patterns, or cost pressures. It is essential for the company to closely monitor and address the underlying reasons for this trend to ensure sustained profitability and financial health.

Investors and stakeholders of CarMax Inc should carefully analyze the company's financial performance and management strategies to assess the implications of the decreasing net profit margin on the overall financial position and long-term sustainability of the company.