CarMax Inc (KMX)
Pretax margin
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 641,595 | 636,804 | 1,492,350 | 965,257 | 1,160,990 |
| Revenue | US$ in thousands | 26,536,000 | 29,684,900 | 31,900,400 | 18,950,100 | 20,320,000 |
| Pretax margin | 2.42% | 2.15% | 4.68% | 5.09% | 5.71% |
February 29, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $641,595K ÷ $26,536,000K
= 2.42%
To analyze CarMax Inc's pretax margin over the past five years, we observe a downward trend in the company's profitability before tax.
In the fiscal year ending February 29, 2024, CarMax reported a pretax margin of 2.42%, a slight increase from the previous year but significantly lower than the margins achieved in fiscal years 2022 and 2021, which stood at 4.68% and 5.09%, respectively.
The declining trend in pretax margin over the past three years could indicate challenges the company may be facing in managing its operating expenses and generating profits before accounting for taxes.
Further analysis would be necessary to identify the specific factors contributing to this decline and assess the company's overall financial health and performance in the upcoming fiscal year.
Peer comparison
Feb 29, 2024