Copart Inc (CPRT)
Return on assets (ROA)
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,552,450 | 1,363,020 | 1,237,740 | 1,090,130 | 936,495 |
| Total assets | US$ in thousands | 10,090,900 | 8,427,760 | 6,737,880 | 5,308,860 | 4,562,140 |
| ROA | 15.38% | 16.17% | 18.37% | 20.53% | 20.53% |
July 31, 2025 calculation
ROA = Net income ÷ Total assets
= $1,552,450K ÷ $10,090,900K
= 15.38%
The Return on Assets (ROA) for Copart Inc. has demonstrated a distinct downward trend over the analyzed period from July 31, 2021, to July 31, 2025. Specifically, the ROA remained steady at 20.53% in both 2021 and 2022, indicating consistent profitability relative to the company's total assets during these years. However, a decline becomes apparent starting in 2023, with the ROA decreasing to 18.37%, which suggests a reduction in the efficiency with which the company utilizes its assets to generate net income.
This declining trajectory continues into 2024, where the ROA further diminishes to 16.17%, and persists in the subsequent year, reaching 15.38% in 2025. The ongoing decrease reflects a gradual reduction in profitability relative to total assets, potentially indicating increasing asset base without a proportionate increase in net income, or a decline in operational efficiency.
Overall, while Copart Inc. exhibited stability in ROA during the initial years, the subsequent annual declines suggest a need for closer scrutiny of the company’s asset utilization and profitability dynamics. This trend warrants further investigation into underlying factors such as changes in revenue, expense management, asset composition, or operational strategies that may be influencing profitability efficiency over this period.