Copart Inc (CPRT)
Profitability ratios
Return on sales
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.00% | 38.23% | 41.40% | 45.69% | 43.99% |
| Operating profit margin | 37.58% | 39.49% | 42.25% | 37.00% | 35.09% |
| Pretax margin | 39.29% | 38.51% | 41.71% | 36.31% | 34.52% |
| Net profit margin | 31.29% | 31.31% | 34.82% | 31.73% | 28.98% |
The profitability ratios of Copart, Inc. provide valuable insights into the company's ability to generate profits relative to its revenue and operating costs. The gross profit margin has remained consistently high over the past five years, indicating efficient cost management and strong pricing strategies. However, there has been a slight decline in the gross profit margin from 2019 to 2023.
The operating profit margin, which reflects the company's ability to control its operating expenses, has also shown a slight decrease over the same period. However, it remained relatively stable at around 38% to 42% during the last five years, suggesting effective management of operating costs.
The pretax margin, representing the proportion of income before taxes relative to total revenue, has shown a slight fluctuation over the past five years, but overall, it has remained relatively consistent, indicating stable performance in generating profits before tax.
The net profit margin, which reflects the company's overall profitability after all expenses including taxes, has slightly increased from 2019 to 2023, reaching 31.99%. This indicates that Copart has effectively managed its expenses and taxes to generate higher profits for its shareholders.
Overall, while there have been some fluctuations, Copart, Inc. has maintained strong profitability ratios over the years, demonstrating efficient cost management and the ability to generate healthy profits relative to its revenue.
Return on investment
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.06% | 25.90% | 24.91% | 23.62% | 28.12% |
| Return on assets (ROA) | 18.37% | 20.53% | 20.53% | 20.26% | 23.23% |
| Return on total capital | 24.78% | 29.71% | 28.94% | 28.45% | 40.75% |
| Return on equity (ROE) | 20.67% | 23.57% | 26.54% | 28.11% | 33.27% |
Copart, Inc.'s profitability ratios indicate its ability to generate income in relation to its assets and capital. The operating return on assets (Operating ROA) decreased from 25.90% in 2022 to 22.06% in 2023, suggesting a decline in the company's operating efficiency in utilizing its assets to generate operating income. However, ROA remained relatively stable over the same period, indicating that the company's overall profitability in relation to its total assets remained consistent.
The return on total capital also showed a slight decline from 29.71% in 2022 to 24.78% in 2023, indicating a decrease in the overall return generated from the total capital, which includes long-term debt and equity. The return on equity (ROE) similarly decreased from 23.57% in 2022 to 20.67% in 2023, signaling a lower return generated for the company's shareholders.
Overall, the decline in these profitability ratios could be indicative of challenges in effectively generating income in relation to the company's assets and capital. It may be important for stakeholders to closely monitor the company's ability to efficiently utilize its resources to maintain and improve its profitability in the future.