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.
Peer comparison
Feb 29, 2024