Carmax Inc
NYSE:KMX
Gross Margin
Carmax Inc
Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.
Gross Margin Across Competitors
| Country | Company | Market Cap |
Gross Margin |
||
|---|---|---|---|---|---|
| US |
|
Carmax Inc
NYSE:KMX
|
8.5B USD |
11%
|
|
| US |
|
O'Reilly Automotive Inc
NASDAQ:ORLY
|
86.7B USD |
51%
|
|
| US |
|
Carvana Co
NYSE:CVNA
|
74.2B USD |
22%
|
|
| US |
|
Autozone Inc
NYSE:AZO
|
67B USD |
53%
|
|
| ZA |
M
|
Motus Holdings Ltd
JSE:MTH
|
16.2B Zac |
100%
|
|
| US |
|
Penske Automotive Group Inc
NYSE:PAG
|
12B USD |
17%
|
|
| TW |
|
Hotai Motor Co Ltd
TWSE:2207
|
309.7B TWD |
12%
|
|
| US |
|
AutoNation Inc
NYSE:AN
|
7.8B USD |
18%
|
|
| US |
|
Lithia Motors Inc
NYSE:LAD
|
7.7B USD |
15%
|
|
| US |
|
Murphy Usa Inc
NYSE:MUSA
|
7.5B USD |
12%
|
|
| DE |
|
AUTO1 Group SE
XETRA:AG1
|
6.4B EUR |
12%
|
Carmax Inc
Glance View
CarMax Inc. found its genesis in the concept of revolutionizing the used car market, which had long been plagued by a reputation for questionable practices and lack of transparency. Established in 1993 by Circuit City executives, CarMax quickly emerged as a disruptive force by instilling trust and simplicity into the automotive retail environment. The company shed light on vehicle histories and pricing structures that were previously cloaked in opacity, thus offering buyers a reliable alternative in a fragmented market. By implementing a chain of superstores, CarMax provided an extensive inventory where customers could browse, test, and purchase vehicles in one streamlined experience. This customer-centric model set CarMax apart from traditional dealerships, driving rapid expansion and solidifying its foothold as a dominant player in the used-car landscape. Operationally, CarMax generates its revenue through a combination of direct car sales and associated financing services. The primary income stream flows from buying cars at auction or from individual sellers, then refurbishing them for resale at attractive prices. CarMax’s no-haggle, fixed-price strategy not only simplifies the buying process but also cultivates trust with customers, enticing high-volume sales. Furthermore, CarMax capitalizes on its captive finance arm, CarMax Auto Finance, which offers a range of financing solutions that generate interest income and diversify revenue streams. Additionally, by selling vehicles that do not meet their retail standards at wholesale auctions, CarMax efficiently manages inventory and mitigates potential losses. The synergy between its innovative retail approach and complementary financial services continues to fuel the company's growth and profitability in the ever-evolving automotive market.
See Also
Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.
Based on Carmax Inc's most recent financial statements, the company has Gross Margin of 11.2%.
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