Copart Inc (CPRT)
Profitability ratios
Return on sales
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.47% | 39.00% | 38.23% | 41.40% | 45.69% |
| Operating profit margin | 36.93% | 37.58% | 39.49% | 42.25% | 37.00% |
| Pretax margin | 40.29% | 39.29% | 38.51% | 41.71% | 36.31% |
| Net profit margin | 32.02% | 31.29% | 31.31% | 34.82% | 31.73% |
Copart Inc's profitability ratios have shown some fluctuations over the past five years. The gross profit margin has declined from 45.69% in Jul 31, 2020, to 36.47% in Jul 31, 2024. This indicates a decrease in the percentage of revenue that remains after deducting the cost of goods sold.
The operating profit margin has also experienced a slight decrease over the years, from 37.00% in Jul 31, 2020, to 36.93% in Jul 31, 2024. This indicates a decrease in the percentage of revenue remaining after deducting both the cost of goods sold and operating expenses.
On the other hand, the pretax margin has shown some fluctuation, with a peak in Jul 31, 2020, and a trough in Jul 31, 2021. This ratio reflects the company's efficiency in controlling operating expenses and interest expenses.
Finally, the net profit margin, which represents the company's overall profitability after all expenses have been deducted, has shown some variability over the years. There was a significant increase in net profit margin in Jul 31, 2021 and a slight decline in Jul 31, 2024.
Overall, the trend in Copart Inc's profitability ratios suggests some fluctuations, with the company experiencing varying levels of profitability over the past five years. It would be important for stakeholders to closely monitor these ratios to understand the company's financial performance and make informed decisions.
Return on investment
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.65% | 22.06% | 25.90% | 24.91% | 23.62% |
| Return on assets (ROA) | 16.17% | 18.37% | 20.53% | 20.53% | 20.26% |
| Return on total capital | 20.83% | 24.78% | 29.71% | 28.94% | 28.45% |
| Return on equity (ROE) | 18.06% | 20.67% | 23.57% | 26.54% | 28.11% |
Copart Inc's profitability ratios have shown a general trend of decline over the past five years. The Operating Return on Assets (Operating ROA) decreased from 25.90% in 2022 to 18.65% in 2024, indicating a reduction in the company's ability to generate operating profits from its assets. Similarly, the Return on Assets (ROA) declined from 20.53% in 2022 to 16.17% in 2024, reflecting a decrease in overall profitability relative to its total assets.
The Return on Total Capital and Return on Equity (ROE) ratios also experienced a downward trend over the same period. The Return on Total Capital decreased from 29.71% in 2022 to 20.83% in 2024, while the ROE declined from 23.57% in 2022 to 18.06% in 2024. These reductions suggest that Copart Inc's ability to generate profits from both total capital and shareholder equity has weakened in recent years.
Overall, the decline in Copart Inc's profitability ratios may raise concerns about the company's efficiency in utilizing its assets and capital to generate returns for its shareholders. Further analysis and investigation into the reasons behind these declining profitability ratios are warranted to identify potential areas for improvement and strategic decisions.