CarMax Inc (KMX)
Pretax margin
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 669,360 | 641,595 | 636,804 | 1,492,350 | 965,257 |
| Revenue | US$ in thousands | 26,353,400 | 26,536,000 | 29,684,900 | 31,900,400 | 18,950,100 |
| Pretax margin | 2.54% | 2.42% | 2.15% | 4.68% | 5.09% |
February 28, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $669,360K ÷ $26,353,400K
= 2.54%
CarMax Inc's pretax margin, a key profitability metric, has experienced fluctuations over the past five years. In February 2021, the pretax margin stood at 5.09%, indicating that the company earned $0.0509 in pre-tax profit for each dollar of revenue generated. However, by February 2023, the pretax margin had declined to 2.15%, suggesting a decrease in profitability efficiency. This downward trend continued into February 2024, with a slight uptick to 2.42%, followed by a modest increase to 2.54% by February 2025.
The decline in pretax margin could be attributed to various factors such as rising operating expenses, changes in pricing strategies, or economic conditions impacting the company's revenue growth relative to costs. It is important for CarMax Inc to closely monitor and address these trends to maintain and improve profitability in the future.
Peer comparison
Feb 28, 2025