CarMax Inc (KMX)
Profitability ratios
Return on sales
| 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 | Feb 29, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 10.34% | 10.11% | 9.85% | 9.98% | 10.28% | 10.01% | 9.77% | 9.43% | 9.16% | 9.39% | 9.66% | 10.31% | 10.95% | 11.57% | 12.59% | 12.55% | 12.86% | 13.04% | 12.84% | 13.40% |
| Operating profit margin | -0.10% | 0.33% | 0.18% | 1.95% | 3.25% | 2.35% | 2.80% | 2.43% | 2.45% | 4.12% | 4.70% | 5.48% | 7.04% | 7.55% | 7.61% | 6.45% | 4.93% | 4.60% | 4.97% | 6.12% |
| Pretax margin | 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% | 5.71% |
| Net profit margin | 1.77% | 1.61% | 1.55% | 1.81% | 1.87% | 1.68% | 1.64% | 1.63% | 1.82% | 2.40% | 2.88% | 3.61% | 4.09% | 4.48% | 5.03% | 3.94% | 4.01% | 3.76% | 3.45% | 4.37% |
CarMax Inc's profitability ratios have shown a decreasing trend over the past few years.
1. Gross profit margin has decreased steadily from 13.40% in February 2020 to 10.34% in November 2024. This indicates a decline in the percentage of revenue remaining after deducting the cost of goods sold.
2. Operating profit margin has fluctuated but generally decreased from 6.12% in February 2020 to -0.10% in November 2024. This suggests that the company's operating expenses have been increasing relative to its revenue.
3. Pretax margin has also shown a downward trend from 5.71% in February 2020 to 2.37% in November 2024, indicating a decrease in the percentage of pre-tax income relative to total revenue.
4. Net profit margin has consistently decreased from 4.37% in February 2020 to 1.77% in November 2024. This shows a decline in the percentage of net income relative to total revenue after accounting for all expenses.
Overall, CarMax Inc's decreasing profitability ratios may indicate challenges in managing costs, improving operational efficiency, or generating higher revenues. Investors and stakeholders may monitor these ratios closely to assess the company's financial performance and sustainability.
Return on investment
| 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 | Feb 29, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.09% | 0.31% | 0.17% | 1.88% | 3.19% | 2.33% | 2.92% | 2.75% | 2.99% | 5.24% | 5.98% | 6.64% | 8.09% | 8.04% | 7.81% | 5.68% | 4.42% | 3.97% | 4.52% | 5.90% |
| Return on assets (ROA) | 1.69% | 1.53% | 1.48% | 1.74% | 1.83% | 1.66% | 1.71% | 1.85% | 2.22% | 3.05% | 3.67% | 4.37% | 4.70% | 4.77% | 5.16% | 3.47% | 3.59% | 3.25% | 3.14% | 4.21% |
| Return on total capital | 14.84% | 10.97% | 10.76% | 11.56% | 11.86% | 12.40% | 12.94% | 15.04% | 17.51% | 21.08% | 24.84% | 29.35% | 30.96% | 31.77% | 33.47% | 22.98% | 24.93% | 23.68% | 24.05% | 32.87% |
| Return on equity (ROE) | 7.42% | 6.76% | 6.54% | 7.89% | 8.24% | 7.55% | 7.91% | 8.64% | 10.49% | 14.91% | 17.90% | 21.99% | 23.51% | 23.75% | 25.06% | 17.11% | 18.21% | 17.32% | 17.51% | 23.57% |
CarMax Inc's profitability ratios have shown varying trends over the last few years.
1. Operating Return on Assets (Operating ROA): This ratio measures how efficiently the company generates profits from its assets used in operations. CarMax's Operating ROA has fluctuated over time, with a peak of 8.09% in November 2021 and a low of -0.09% in November 2024. The average Operating ROA during this period is approximately 4.86%.
2. Return on Assets (ROA): ROA indicates how well the company utilizes its total assets to generate profits. CarMax's ROA has also exhibited fluctuations, with a high of 5.16% in May 2021 and a low of 1.53% in August 2024. The average ROA for the period is around 3.29%.
3. Return on Total Capital: This ratio reflects the return generated from all the capital employed in the business. CarMax's Return on Total Capital has declined from 32.87% in February 2020 to 14.84% in November 2024. The average Return on Total Capital during the period is about 21.50%.
4. Return on Equity (ROE): ROE measures the return earned on shareholders' equity. CarMax's ROE has shown a downward trend from 23.57% in February 2020 to 7.42% in November 2024. The average ROE for the period is approximately 16.04%.
Overall, CarMax's profitability ratios indicate a mixed performance, with fluctuations in profitability levels over the years. It is essential for the company to address the declining trends in certain ratios to ensure sustainable long-term profitability and shareholder value.