CarMax Inc (KMX)

Operating profit margin

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Operating income	US$ in thousands	110,903	11,997	682,666	415,788	714,504
Revenue	US$ in thousands	26,536,000	29,684,900	31,900,400	18,950,100	20,320,000
Operating profit margin		0.42%	0.04%	2.14%	2.19%	3.52%

February 29, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $110,903K ÷ $26,536,000K
= 0.42%

CarMax Inc's operating profit margin has exhibited a declining trend over the past five years, from 3.52% in February 2020 to 0.42% in February 2024. This downward trend may indicate challenges in generating profit from its core operations relative to revenue. The significant drop from 2019 to 2020 suggests a notable decrease in efficiency or higher operating expenses in the following years. The low operating profit margin in 2024 could be a cause for concern, signaling that CarMax may need to assess its cost structure or pricing strategies to improve profitability in the future.