Copart Inc (CPRT)
Profitability ratios
Return on sales
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 45.18% | 44.71% | 44.84% | 44.81% | 45.02% | 45.67% | 45.94% | 45.83% | 44.89% | 44.23% | 43.93% | 44.38% | 45.88% | 47.00% | 48.33% | 49.19% | 49.88% | 50.05% | 48.00% | 46.78% |
| Operating profit margin | 36.51% | 35.80% | 36.16% | 36.28% | 37.10% | 38.49% | 39.03% | 39.29% | 38.42% | 37.83% | 37.42% | 37.84% | 39.28% | 40.16% | 41.36% | 41.86% | 42.21% | 42.14% | 39.70% | 38.29% |
| Pretax margin | 40.79% | 39.77% | 39.83% | 39.94% | 40.47% | 41.53% | 41.83% | 41.65% | 40.17% | 38.19% | 37.11% | 37.06% | 38.30% | 39.70% | 40.84% | 41.27% | 41.67% | 41.49% | 39.06% | 37.68% |
| Net profit margin | 33.41% | 32.21% | 32.27% | 31.92% | 32.17% | 33.33% | 33.41% | 33.14% | 31.99% | 30.72% | 29.45% | 30.01% | 31.14% | 32.15% | 34.51% | 34.25% | 34.78% | 34.26% | 30.92% | 30.39% |
The profitability ratios of Copart Inc. over the analyzed period exhibit a degree of consistency with mild fluctuations, indicating a relatively stable profitability profile.
Gross Profit Margin trends suggest a gradual decline from 46.78% as of October 2020 to approximately 44.71% in the second quarter of 2025. The margin peaked around April 2021 at 50.05%, but has generally trended downward thereafter, with a brief recovery to approximately 45.83% in October 2023. This decline indicates a modest compression in gross profitability, potentially attributable to increased cost of goods sold or competitive pricing pressures.
Operating Profit Margin similarly shows a slight downward trajectory, starting at 38.29% in October 2020 and decreasing to a low of around 35.80% in July 2025. Notable temporary increases, such as in April 2021 (42.14%) and July 2023 (38.42%), reflect periods of operational efficiency or favorable cost management, but the trend overall points towards narrowing operating margins over time.
Pre-tax Margin follows a comparable pattern. It begins at 37.68% in October 2020, peaks at approximately 41.49% in April 2021, and generally declines thereafter, reaching around 39.77% in July 2025. This indicates that despite fluctuations, the pre-tax profitability remains relatively resilient, maintaining a level near 40%.
Net Profit Margin has exhibited stability with minor fluctuations. Starting at 30.39% in October 2020, it experienced an increase to around 34.26% in April 2021, then mostly ranged between approximately 29% and 33.41%, with a notable rise to 33.14% in October 2023. The overall trend suggests a steady net profitability, with the margin maintaining above 30% throughout the period, implying effective management of overall expenses relative to revenue.
In summary, Copart Inc.'s profitability ratios demonstrate a trend of minor declines in gross and operating margins over the period, yet with resilience in net profit margins. These ratios indicate a consistent ability to sustain profitability despite slight compression at gross and operating levels, reflecting stable operational efficiency and cost management.
Return on investment
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.81% | 16.99% | 17.73% | 17.85% | 18.65% | 20.01% | 20.86% | 21.41% | 22.06% | 22.37% | 23.17% | 24.25% | 25.90% | 24.83% | 25.44% | 24.76% | 24.91% | 24.30% | 23.07% | 22.97% |
| Return on assets (ROA) | 15.38% | 15.29% | 15.83% | 15.70% | 16.17% | 17.33% | 17.85% | 18.06% | 18.37% | 18.17% | 18.24% | 19.23% | 20.53% | 19.88% | 21.23% | 20.26% | 20.53% | 19.76% | 17.96% | 18.23% |
| Return on total capital | 19.20% | 18.74% | 19.65% | 20.07% | 20.91% | 22.37% | 23.36% | 24.52% | 24.84% | 25.08% | 26.02% | 27.58% | 29.34% | 31.13% | 32.05% | 32.17% | 32.35% | 32.14% | 31.03% | 31.93% |
| Return on equity (ROE) | 16.90% | 16.84% | 17.52% | 17.64% | 18.12% | 19.36% | 19.98% | 20.66% | 20.67% | 20.63% | 20.75% | 22.16% | 23.57% | 24.86% | 26.66% | 26.27% | 26.54% | 26.04% | 24.02% | 25.16% |
The analysis of Copart Inc.'s profitability ratios over the specified period reveals several noteworthy trends:
1. Operating Return on Assets (Operating ROA) has experienced a gradual decline from a peak of 25.44% as of January 31, 2022, to 17.73% by July 31, 2025. This declining trajectory suggests a reduction in the company's efficiency in generating operating profit relative to its asset base. Although the ratio remains positive, the decreasing trend indicates potential pressures on operational margins or changes in asset utilization effectiveness.
2. Return on Assets (ROA), encompassing broader profitability, shows a similar pattern. It decreased from 21.23% in January 2022 to 15.83% in January 2024, with further decline to 15.38% by July 2025. The consistent downward movement of ROA implies diminished overall efficiency in converting assets into net income, possibly influenced by increased asset base or competitive and market dynamics affecting profitability.
3. Return on Total Capital (ROTC) has declined from 32.05% in January 2022 to 18.74% as of April 30, 2025. While the ratio remains above 18%, the downward trend indicates that the company's ability to generate returns from its total capital employed has waned, reflecting potential challenges in maintaining profitability on its capital structure.
4. Return on Equity (ROE), measuring shareholders' returns, has also exhibited a declining trajectory, falling from approximately 26.66% in January 2022 to 16.84% in April 2025. This decline suggests that the company's net income relative to shareholders' equity has diminished, which could be due to reduced profitability or increased equity base.
Overall, the long-term trend across these profitability ratios indicates a consistent decline over the analyzed period. While Copart has maintained positive profitability ratios, the persistent downward movement may warrant scrutiny into underlying operational and market factors affecting profitability performance.