CarMax Inc (KMX)

Operating profit margin

		Feb 28, 2025	Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021
Operating income	US$ in thousands	462,497	942,202	1,067,500	1,815,240	1,051,440
Revenue	US$ in thousands	26,353,400	26,536,000	29,684,900	31,900,400	18,950,100
Operating profit margin		1.75%	3.55%	3.60%	5.69%	5.55%

February 28, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $462,497K ÷ $26,353,400K
= 1.75%

To analyze CarMax Inc's operating profit margin over the past five years, we observe the following trend:

- As of February 28, 2021, the operating profit margin stood at 5.55%.
- By February 28, 2022, the margin had slightly improved to 5.69%.
- However, there was a notable decline in the operating profit margin to 3.60% by February 28, 2023.
- The trend continued with a further decrease to 3.55% by February 29, 2024.
- The most recent data point, as of February 28, 2025, indicates a significant drop in the operating profit margin to 1.75%.

Overall, the operating profit margin for CarMax Inc has displayed a fluctuating pattern over the past five years, with a peak in 2022 followed by a downward trajectory in subsequent years. This downward trend raises concerns about the company's ability to manage operating expenses effectively and generate profits from its core operations. Further analysis of the factors influencing these fluctuations would be necessary to determine the future implications for CarMax's financial performance.