CarMax, Inc. (KMX) has reported a 6.59 percent rise in profit for the quarter ended Nov. 30, 2016. The company has earned $136.64 million, or $0.72 a share in the quarter, compared with $128.20 million, or $0.63 a share for the same period last year.

Revenue during the quarter grew 4.44 percent to $3,701.52 million from $3,544.07 million in the previous year period. Gross margin for the quarter expanded 49 basis points over the previous year period to 13.59 percent. Total expenses were 93.63 percent of quarterly revenues, down from 93.82 percent for the same period last year. This has led to an improvement of 19 basis points in operating margin to 6.37 percent.

Operating income for the quarter was $235.76 million, compared with $219.14 million in the previous year period.

The company has spent $338.21 million cash to meet investing activities during the nine month period as against cash outgo of $274.62 million in the last year period. It has incurred net capital expenditure of $314.82 million on net basis during the nine month period, up 31.55 percent or $75.50 million from year ago period.

Cash flow from financing activities was $667.66 million for the nine month period, up 0.86 percent or $5.72 million, when compared with the last year period.

Cash and cash equivalents stood at $23.71 million as on Nov. 30, 2016, down 28.89 percent or $9.63 million from $33.35 million on Nov. 30, 2015.

Debt moves up
CarMax, Inc. has witnessed an increase in total debt over the last one year. It stood at $11,808.83 million as on Nov. 30, 2016, up 11.56 percent or $1,223.49 million from $10,585.35 million on Nov. 30, 2015. Total debt was 74.93 percent of total assets as on Nov. 30, 2016, compared with 73.61 percent on Nov. 30, 2015. Debt to equity ratio was at 3.92 as on Nov. 30, 2016, up from 3.64 as on Nov. 30, 2015. Interest coverage ratio deteriorated to 15.64 for the quarter from 21.87 for the same period last year.