Copart Inc (CPRT)
Profitability ratios
Return on sales
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 45.18% | 45.02% | 44.89% | 45.88% | 49.88% |
| Operating profit margin | 36.51% | 37.10% | 38.42% | 39.28% | 42.21% |
| Pretax margin | 40.79% | 40.47% | 40.17% | 38.30% | 41.67% |
| Net profit margin | 33.41% | 32.17% | 31.99% | 31.14% | 34.78% |
Copart Inc.'s profitability ratios over the period from July 31, 2021, to July 31, 2025, exhibit various trends that provide insights into the company's operational efficiency and overall profitability.
The gross profit margin demonstrates a slight decline from 49.88% in 2021 to 45.02% in 2024, with a marginal increase to 45.18% in 2025. This trend suggests a gradual compression in gross profitability, potentially attributable to increased cost of goods sold or competitive pricing pressures.
The operating profit margin shows a more pronounced decline, decreasing from 42.21% in 2021 to 37.10% in 2024. However, it stabilizes somewhat, reaching 36.51% in 2025. This pattern indicates that while the company's core operations remain profitable, their efficiency has been slightly diminishing, possibly due to rising operating expenses or investments impacting operating margins.
The pretax profit margin exhibits a pattern of initial decline followed by recovery, decreasing from 41.67% in 2021 to 38.30% in 2022, then increasing to over 40% in subsequent years—40.17% in 2023, 40.47% in 2024, and reaching 40.79% in 2025. This oscillation may reflect varying levels of non-operating expenses or income, tax considerations, or other one-time factors influencing pretax profitability.
The net profit margin displays a downward trend from 34.78% in 2021 to 31.14% in 2022, followed by an improvement to 31.99% in 2023, and continued gradual growth to 32.17% in 2024 and further to 33.41% in 2025. The overall trajectory indicates a recovery and slight enhancement in bottom-line profitability after initial declines, suggesting that the company is managing to mitigate costs and improve net income relative to revenues over time.
In summary, while Copart Inc. experienced some compression in gross and operating margins in the earlier period, there is evidence of partial recovery in pretax and net margins, reflecting a resilient profitability profile that has managed to improve slightly in recent years.
Return on investment
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.81% | 18.65% | 22.06% | 25.90% | 24.91% |
| Return on assets (ROA) | 15.38% | 16.17% | 18.37% | 20.53% | 20.53% |
| Return on total capital | 20.63% | 20.89% | 24.83% | 29.74% | 32.23% |
| Return on equity (ROE) | 16.90% | 18.12% | 20.67% | 23.57% | 26.54% |
The analysis of Copart Inc's profitability ratios over the specified period indicates a pattern of decline across multiple measures. The Operating Return on Assets (Operating ROA) decreased from 24.91% as of July 31, 2021, to 25.90% in 2022, reaching a peak, but subsequently declined to 22.06% in 2023, and continued to decrease to 18.65% in 2024 and 16.81% in 2025. This trend suggests a reduction in operating efficiency and profitability from core business activities over time.
Similarly, the Return on Assets (ROA), which considers net income relative to total assets, remained stable at 20.53% in 2021 and 2022 before dropping to 18.37% in 2023, and further decreasing to 16.17% in 2024 and 15.38% in 2025. This consistent decline indicates a diminishing capacity to generate net income from the company's asset base.
The Return on Total Capital, reflecting the company's ability to generate returns from both equity and debt-financed capital, also exhibits a downward trend, from 32.23% in 2021 to 29.74% in 2022, then falling to 24.83% in 2023, and further to 20.89% in 2024, before slightly declining to 20.63% in 2025. The pattern suggests increasing challenges in leveraging total capital efficiently to produce profits.
Additionally, the Return on Equity (ROE), which measures profitability from shareholders' perspective, decreased from 26.54% in 2021 to 23.57% in 2022, continuing downward to 20.67% in 2023, and further to 18.12% in 2024, reaching 16.90% in 2025. This indicates a reduced return to equity holders over the analyzed period.
Overall, the profitability ratios demonstrate a consistent trend of declining profitability metrics over the four-year span, indicating potential challenges in maintaining prior levels of operational efficiency and net income generation, which could be attributed to factors such as increased expenses, competitive pressures, or changes in market conditions.