GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » CarMax Inc (NYSE:KMX) » Definitions » Operating Margin %

KMX (CarMax) Operating Margin % : -0.71% (As of Aug. 2024)


View and export this data going back to 1997. Start your Free Trial

What is CarMax Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. CarMax's Operating Income for the three months ended in Aug. 2024 was $-50 Mil. CarMax's Revenue for the three months ended in Aug. 2024 was $7,014 Mil. Therefore, CarMax's Operating Margin % for the quarter that ended in Aug. 2024 was -0.71%.

The historical rank and industry rank for CarMax's Operating Margin % or its related term are showing as below:

KMX' s Operating Margin % Range Over the Past 10 Years
Min: -1.19   Med: 2.9   Max: 4.41
Current: -1.19


KMX's Operating Margin % is ranked worse than
83.27% of 1285 companies
in the Vehicles & Parts industry
Industry Median: 5.14 vs KMX: -1.19

CarMax's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

CarMax's Operating Income for the three months ended in Aug. 2024 was $-50 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2024 was $-307 Mil.

Warning Sign:

CarMax Inc had lost money in 75% of the time over the past 12quarters.


CarMax Operating Margin % Historical Data

The historical data trend for CarMax's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CarMax Operating Margin % Chart

CarMax Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.72 1.44 1.73 -1.05 -0.78

CarMax Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.83 -1.57 -2.64 -0.18 -0.71

Competitive Comparison of CarMax's Operating Margin %

For the Auto & Truck Dealerships subindustry, CarMax's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CarMax's Operating Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Operating Margin % distribution charts can be found below:

* The bar in red indicates where CarMax's Operating Margin % falls into.



CarMax Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

CarMax's Operating Margin % for the fiscal year that ended in Feb. 2024 is calculated as

Operating Margin %=Operating Income (A: Feb. 2024 ) / Revenue (A: Feb. 2024 )
=-205.719 / 26536.04
=-0.78 %

CarMax's Operating Margin % for the quarter that ended in Aug. 2024 is calculated as

Operating Margin %=Operating Income (Q: Aug. 2024 ) / Revenue (Q: Aug. 2024 )
=-49.934 / 7013.529
=-0.71 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


CarMax  (NYSE:KMX) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


CarMax Operating Margin % Related Terms

Thank you for viewing the detailed overview of CarMax's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


CarMax Business Description

Traded in Other Exchanges
Address
12800 Tuckahoe Creek Parkway, Richmond, VA, USA, 23238
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
Executives
Jill A Livesay officer: VP, Controller & PAO CARMAX, INC., 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Mohammad Shamim officer: SVP and CIO 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Charles Joseph Wilson officer: SVP 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Enrique N Mayor-mora officer: SVP & CFO 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
William D Nash officer: EVP, HR & Admin Services 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Jon G Daniels officer: SVP, CAF 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Diane L Cafritz officer: SVP & CHRO 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Darren C Newberry officer: SVP 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
James Lyski officer: SVP & Chief Marketing Officer CARMAX, 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Ronald E Blaylock director
Edwin J Hill officer: SVP 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Eric M Margolin officer: SVP, Gen. Counsel & Secretary CARMAX, 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Thomas J Folliard officer: Executive Vice President 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Reedy Thomas W Jr officer: SVP & CFO 12800 TUCKHOE CREEK PARKWAY, RICHMOND VA 23238
Mark F Oneil director C/O CARMAX, INC., 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238