CarMax Inc (KMX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 10.75% | 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% |
| Operating profit margin | 0.01% | -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% |
| 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% |
| Net profit margin | 1.90% | 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% |
CarMax Inc's profitability ratios have shown some fluctuations over the reporting periods. The gross profit margin has gradually decreased from 12.84% on May 31, 2020, to 10.75% on February 28, 2025, indicating a declining trend in the company's ability to generate profit from sales after deducting the cost of goods sold.
The operating profit margin started at 4.97% on May 31, 2020, peaked at 7.61% on May 31, 2021, and then declined significantly to 0.01% on February 28, 2025. This suggests fluctuations in the company's ability to control operational expenses and generate profit from its core business activities.
The pretax margin has also shown variability, starting at 4.48% on May 31, 2020, peaking at 6.53% on May 31, 2021, and then declining to 2.54% on February 28, 2025. This implies fluctuations in the company's ability to generate profit before accounting for taxes relative to its total revenue.
Moreover, the net profit margin has followed a similar pattern, starting at 3.45% on May 31, 2020, reaching a peak of 5.03% on May 31, 2021, and then declining to 1.90% on February 28, 2025. This indicates fluctuations in CarMax Inc's ability to generate profit after deducting all expenses, including taxes and interest payments.
Overall, these profitability ratios reflect the challenges and fluctuations in CarMax Inc's ability to maintain consistent and strong profitability over time. Investors and stakeholders may need to closely monitor the company's financial performance and strategies to address the factors influencing its profitability ratios.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.01% | -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% |
| Return on assets (ROA) | 1.83% | 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% |
| Return on total capital | 18.61% | 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% |
| Return on equity (ROE) | 8.02% | 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% |
CarMax Inc's profitability ratios showed varying performance over the past few years.
1. Operating Return on Assets (Operating ROA) increased from 4.52% in May 2020 to a peak of 8.09% in November 2021 before declining to 0.01% in February 2025. This suggests that the company's operating income generated from its assets was initially improving but then faced challenges in recent periods.
2. Return on Assets (ROA) exhibited a similar trend, rising from 3.14% in May 2020 to a high of 5.16% in May 2021, but subsequently dropped to 1.83% in February 2025. The ROA indicates the company's ability to generate profits from its total assets, showing a mixed performance in recent years.
3. Return on Total Capital showed a gradual decline from 24.05% in May 2020 to 18.61% in February 2025, with fluctuations in between. This ratio reflects the efficiency of the company in generating returns from both debt and equity investments, indicating a decreasing trend in profitability in recent years.
4. Return on Equity (ROE) also displayed a declining pattern, decreasing from 17.51% in May 2020 to 8.02% in February 2025. ROE measures the profitability for the shareholders, showing that the company's profitability relative to its shareholders' equity has decreased over the analyzed period.
Overall, CarMax Inc's profitability ratios have shown mixed performance, with fluctuations and a downward trend in recent years, indicating possible challenges in generating profits and returns for its investors.