RE: Small profit marginsYou guys hit the nail right on the head. What is worrying is the fact that this margin has been dropping, from their fiscal 2007 year, to their fiscal 2008 year, to their last quarter. Revenue isn't the problem, expenses are, so this company is going to need to make some serious amends to control costs (business costs not cost of goods sold) in order to remain successful. One thing this company has going for itself is that it is in a very good debt position thanks to the recent deal they made and considering the fact that they have $1.36 billion in current assets and $844 million in TOTAL liabilities. I think what could help out Carmax Inc would be to trim the fat around the company, it may want to cut back and lay off some workers in order to increase its margins.