CarMax Inc (KMX)

Operating profit margin

		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	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Operating income (ttm)	US$ in thousands	110,903	146,464	82,470	46,328	11,997	68,004	346,122	522,419	682,666	733,537	681,819	754,926	415,788	536,641	513,893	463,746	734,957	717,239	751,920	739,433
Revenue (ttm)	US$ in thousands	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	20,319,990	19,676,100	19,181,940	18,746,830
Operating profit margin		0.42%	0.55%	0.31%	0.17%	0.04%	0.21%	1.03%	1.56%	2.14%	2.50%	2.62%	3.22%	2.19%	2.86%	2.80%	2.55%	3.62%	3.65%	3.92%	3.94%

February 29, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $110,903K ÷ $26,536,040K
= 0.42%

Based on the operating profit margin data for CarMax Inc over the provided periods, we can observe fluctuations in the company's profitability relative to its revenue. The operating profit margin has exhibited variability, ranging from a low of 0.04% in February 2023 to a high of 3.94% in May 2019.

The trend analysis indicates that the operating profit margin has generally shown a decrease from higher levels in earlier periods to lower levels in recent periods. This could suggest potential challenges in controlling operating expenses relative to revenue generation or changes in the revenue mix impacting profitability.

The company's ability to effectively manage operating expenses and maximize revenue generation is crucial for sustaining profitability and overall financial performance. Further investigation into the factors influencing the fluctuations in the operating profit margin over the periods would be necessary to assess the company's operational efficiency and strategic positioning.