CarMax Inc (KMX)

Operating 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
Operating income (ttm)	US$ in thousands	2,041	-25,871	85,591	46,757	516,815	865,840	634,750	786,499	720,370	775,703	1,387,756	1,575,760	1,749,441	2,069,184	1,965,285	1,782,430	1,222,694	924,996	844,433	903,074
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
Operating profit margin		0.01%	-0.10%	0.33%	0.18%	1.95%	3.25%	2.35%	2.80%	2.43%	2.45%	4.12%	4.70%	5.48%	7.04%	7.55%	7.61%	6.45%	4.93%	4.60%	4.97%

February 28, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,041K ÷ $26,353,420K
= 0.01%

CarMax Inc's operating profit margin has shown fluctuating performance over the specified period. Starting at 4.97% on May 31, 2020, the margin decreased slightly to 4.60% by August 31, 2020, before increasing to 6.45% by February 28, 2021. This upward trend continued, reaching a peak of 7.61% by May 31, 2021.

However, from August 31, 2021, the operating profit margin began to decline gradually, dropping to 2.35% by August 31, 2023. The margin saw a recovery to 3.25% by November 30, 2023, but again dipped to 0.01% by February 28, 2025.

The significant drop in the operating profit margin observed towards the end of the period may indicate challenges in controlling operating expenses relative to sales revenue. This decline could be a concern for investors and stakeholders, warranting further investigation into the company's cost structure and operational efficiency.