Copart Inc (CPRT)
Operating return on assets (Operating ROA)
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,486,570 | 1,375,000 | 1,136,430 | 816,099 | 716,475 |
| Total assets | US$ in thousands | 6,737,880 | 5,308,860 | 4,562,140 | 3,455,260 | 2,547,620 |
| Operating ROA | 22.06% | 25.90% | 24.91% | 23.62% | 28.12% |
July 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,486,570K ÷ $6,737,880K
= 22.06%
To analyze Copart, Inc.'s operating return on assets (operating ROA) over the past five years, we observe a downward trend from 2019 to 2023. The operating ROA decreased from 28.12% in 2019 to 22.06% in 2023. This indicates a decrease in the company's ability to generate operating profit from its assets over the period.
The declining trend suggests that Copart's operational efficiency and profitability in utilizing its assets have weakened over the years. Factors contributing to this decline could include increased operating expenses, lower operating income, or a significant increase in total assets without a proportional increase in operating income.
Further analysis of the company's financial and operational performance, as well as comparisons with industry peers, would be necessary to understand the specific drivers behind this trend and assess the company's overall financial health and operational effectiveness.
Peer comparison
Jul 31, 2023