Switch to:
CarMax Inc (NYSE:KMX)
Net Margin
3.81% (As of Feb. 2016)

Net margin is calculated as net income divided by its revenue. CarMax Inc's net income for the three months ended in Feb. 2016 was $141 Mil. CarMax Inc's revenue for the three months ended in Feb. 2016 was $3,706 Mil. Therefore, CarMax Inc's net margin for the quarter that ended in Feb. 2016 was 3.81%.

KMX' s Net Margin Range Over the Past 10 Years
Min: 0.85   Max: 4.21
Current: 4.12

0.85
4.21
KMX's Net Margin is ranked higher than
53% of the 1241 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 3.63 vs. KMX: 4.12 )

Definition

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

CarMax Inc's Net Margin for the fiscal year that ended in Feb. 2016 is calculated as

Net Margin=Net Income (A: Feb. 2016 )/Revenue (A: Feb. 2016 )
=623.428/15149.675
=4.12 %

CarMax Inc's Net Margin for the quarter that ended in Feb. 2016 is calculated as

Net Margin=Net Income (Q: Feb. 2016 )/Revenue (Q: Feb. 2016 )
=141.027/3705.805
=3.81 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Related Terms

Net Income, Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion and Amortization, Interest Expense, Non-Recurring Items, Tax Expense


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

CarMax Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
netmargin 2.662.220.853.774.214.143.963.924.194.12

CarMax Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
netmargin 3.623.224.524.293.824.074.534.433.623.81
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK