CarMax Inc (KMX)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 669,360 | 616,467 | 560,553 | 540,995 | 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 |
| 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 |
| Pretax margin | 2.54% | 2.37% | 2.16% | 2.08% | 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% |
February 28, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $669,360K ÷ $26,353,420K
= 2.54%
CarMax Inc's pretax margin, which represents the percentage of income generated before taxes out of total revenue, has experienced fluctuations over the time period provided.
From May 31, 2020, to May 31, 2021, there was a general upward trend in the pretax margin, indicating improving profitability. The margin increased from 4.48% in May 2020 to 6.53% in May 2021, reflecting more efficient cost management or higher revenue generation.
However, starting from August 31, 2021, the pretax margin began to decline gradually, reaching 2.54% by February 28, 2025. This decreasing trend suggests potential challenges in maintaining profitability, possibly due to rising costs, competitive pressures, or changes in operating efficiency.
It is essential for CarMax Inc to closely monitor its cost structure, revenue streams, and overall financial performance to sustain or improve its pretax margin in the future. Implementing strategic cost-saving measures, enhancing operational efficiency, and exploring revenue growth opportunities could help mitigate the downward trend observed in the recent periods.
Peer comparison
Feb 28, 2025