Copart Inc (CPRT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 9,187,030 | 7,524,010 | 5,987,440 | 4,625,600 | 3,529,200 |
| ROE | 16.90% | 18.12% | 20.67% | 23.57% | 26.54% |
July 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,552,450K ÷ $9,187,030K
= 16.90%
The return on equity (ROE) for Copart Inc. demonstrates a consistent declining trend over the analyzed period from July 31, 2021, to July 31, 2025. Specifically, the ROE decreased from 26.54% in 2021 to 23.57% in 2022, reflecting a notable reduction in the company's ability to generate profit from shareholders’ equity within that year. The downward trajectory continued into 2023, with the ROE further declining to 20.67%, indicating ongoing challenges or shifts in operational efficiency or profitability metrics. The decline persisted through 2024, with the ROE reaching 18.12%, and continued into 2025, where it stood at 16.90%.
This gradual decrease suggests that the company’s efficiency in leveraging shareholders’ equity to generate profits has been diminishing over the recent years. Factors contributing to this trend could include changes in net income margins, variations in asset utilization, or alterations in leverage ratios. The consistent decline indicates a need for a detailed review of operational performance, profit margins, and capital structure adjustments to understand whether these decreases reflect temporary market conditions or structural shifts within the company's business model.