CarMax Inc (KMX)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 641,595 | 658,718 | 598,153 | 607,442 | 636,804 | 755,417 | 1,061,385 | 1,261,624 | 1,492,346 | 1,553,348 | 1,507,890 | 1,528,417 | 965,257 | 979,641 | 896,697 | 813,893 | 1,160,986 | 1,140,182 | 1,160,431 | 1,144,379 |
| 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 |
| Pretax margin | 2.42% | 2.47% | 2.22% | 2.16% | 2.15% | 2.39% | 3.15% | 3.76% | 4.68% | 5.29% | 5.79% | 6.53% | 5.09% | 5.23% | 4.89% | 4.48% | 5.71% | 5.79% | 6.05% | 6.10% |
February 29, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $641,595K ÷ $26,536,040K
= 2.42%
The pretax margin of CarMax Inc has shown variability over the past 20 reporting periods. The pretax margin measures the company's efficiency in generating profits before taxes relative to its total revenue.
From November 2019 to August 2020, the pretax margin ranged between 4.48% and 5.71%, showing relatively stable profitability. However, from September 2020 to February 2022, there was a consistent increase in pretax margin, reaching a peak of 6.10% in February 2022.
Subsequently, there was a decline in pretax margin from February 2022 to August 2023, with the margin decreasing to as low as 2.15% in February 2023. However, there was a slight recovery in the pretax margin in the latest reporting period of February 2024, where it stood at 2.42%.
Overall, CarMax Inc's pretax margin has shown fluctuation over the analyzed period, with both increases and decreases in profitability. It is important for the company to closely monitor and manage its expenses and revenue generation to maintain and improve its pretax margin in the future.
Peer comparison
Feb 29, 2024