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CarMax Operating Margin %

: 1.76% (As of Aug. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. CarMax's Operating Income for the three months ended in Aug. 2021 was $140 Mil. CarMax's Revenue for the three months ended in Aug. 2021 was $7,988 Mil. Therefore, CarMax's Operating Margin % for the quarter that ended in Aug. 2021 was 1.76%.

Warning Sign:

CarMax Inc operating margin has been in 5-year decline. The average rate of decline per year is -18.8%.

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

NYSE:KMX' s Operating Margin % Range Over the Past 10 Years
Min: 1.44   Med: 4.06   Max: 13.77
Current: 1.89

1.44
13.77

NYSE:KMX's Operating Margin % is ranked lower than
54% of the 118 Companies
in the Vehicles & Parts industry.

( Industry Median: 2.79 vs. NYSE:KMX: 1.89 )

CarMax's 5-Year Average Operating Margin % Growth Rate was -18.80% per year.

CarMax's Operating Income for the three months ended in Aug. 2021 was $140 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2021 was $492 Mil.

Warning Sign:

CarMax Inc has recorded a loss in operating income at least once over the past 3 years.


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 Annual Data
Trend Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.38 4.16 3.07 2.73 1.44

CarMax Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
Operating Margin % 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 Premium Member Only Premium Member Only Premium Member Only 4.18 2.94 -2.35 4.16 1.76

Competitive Comparison

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 Operating Margin % Distribution

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. 2021 is calculated as

Operating Margin %=Operating Income (A: Feb. 2021 ) / Revenue (A: Feb. 2021 )
=273.625 / 18950.149
=1.44 %

CarMax's Operating Margin % for the quarter that ended in Aug. 2021 is calculated as

Operating Margin %=Operating Income (Q: Aug. 2021 ) / Revenue (Q: Aug. 2021 )
=140.309 / 7988.359
=1.76 %

* 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

CarMax logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 423110 SIC : 5521
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 220 used retail stores at the end of fiscal 2021 plus one new vehicle store. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales account for about 83% of revenue, wholesale about 14%, and the remaining portion is composed of extended service plans and repair. In fiscal 2021, the company retailed and wholesaled 751,862 and 426,268 used vehicles, respectively. CarMax is the largest used vehicle retailer in the U.S., but still estimates that it has only about 3.5% U.S. market share of vehicles 0 to 10 years old but seeks over 5% by the end of calendar 2025. CarMax is based in Richmond, Virginia.
Executives
Oneil Mark F director C/O CARMAX, INC. 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Reedy Thomas W Jr officer: EVP of Finance 12800 TUCKHOE CREEK PARKWAY RICHMOND VA 23238
Margolin Eric M officer: EVP, Gen. Counsel & Secretary C/O ADVANCE AUTO PARTS 5673 AIRPORT RD ROANOKE VA 24012
Lyski James officer: EVP & Chief Marketing Officer ONE NATIONWIDE PLAZA 1-38-06 COLUMBUS OH 43215
Nash William D officer: President & CEO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Daniels Jon G officer: SVP, CAF 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Folliard Thomas J director 4900 COX RD GELN ALLEN VA 23060
Livesay Jill A officer: VP, Controller & PAO CARMAX, INC. 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Cafritz Diane L officer: SVP & CHRO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Hill Edwin J officer: EVP & COO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Blaylock Ronald E director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BLAYLOCK RONALD E a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Satriano Pietro director C/O US FOODS HOLDING CORP. 9399 W. HIGGINS RD., STE 100 ROSEMONT IL 60018
Shinder Marcella director 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Steenrod Mitchell D director 12800 TUCKAHOE CREEK PKWY RICHMOND VA 23238
Mccreight David W. director C/O URBAN OUTFITTERS, INC. 5000 SOUTH BROAD STREET PHILADELPHIA PA 19112

CarMax Headlines

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