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.
Peer comparison
Feb 28, 2025