Copart Inc (CPRT)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,552,449 | 1,478,662 | 1,454,344 | 1,392,579 | 1,363,020 | 1,388,238 | 1,356,378 | 1,324,420 | 1,237,741 | 1,153,691 | 1,081,880 | 1,075,615 | 1,090,130 | 1,082,369 | 1,090,545 | 996,573 | 936,495 | 846,054 | 706,745 | 682,012 |
| Total stockholders’ equity | US$ in thousands | 9,187,030 | 8,781,190 | 8,301,260 | 7,896,310 | 7,524,010 | 7,171,250 | 6,787,600 | 6,411,420 | 5,987,440 | 5,592,420 | 5,213,650 | 4,852,830 | 4,625,600 | 4,353,050 | 4,089,860 | 3,793,820 | 3,529,200 | 3,249,380 | 2,942,590 | 2,710,830 |
| 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% |
July 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,552,449K ÷ $9,187,030K
= 16.90%
The analysis of Copart Inc.'s return on equity (ROE) over the specified period reveals a generally declining trend. Beginning with an ROE of 25.16% as of October 31, 2020, the ratio experienced slight fluctuations but maintained a relatively high level through early 2021, reaching a peak of approximately 26.54% on July 31, 2021. Subsequently, the ROE remained above 24%, indicating a period of stable profitability relative to shareholders' equity.
However, from late 2021 onward, a downward trend becomes evident. By October 31, 2021, the ROE had decreased slightly to around 26.27%, and this decline persisted into 2022, with the ratio falling below 24%. Throughout 2022 and into 2023, the ROE continued to decline gradually, reaching approximately 20.75% as of January 31, 2023, and stabilizing around 20.63% to 20.67% during the following quarters.
The trajectory indicates a consistent decrease in profitability relative to equity base, with the ROE dropping below 20% by October 31, 2022. The trend persisted through 2023 and into 2024, with the ratio decreasing further to approximately 17.64% by October 31, 2024. The decline persisted into early 2025, with the ROE reaching approximately 16.84% by April 30, 2025.
Overall, the data demonstrates that Copart Inc.'s ROE has experienced a steady diminution over the observed period. This decline could reflect various factors, including increased equity base, reduced net income margins, or changes within the firm's operational efficiency. The consistent downward trend warrants consideration of underlying causes, such as market conditions, competitive pressures, or internal strategic shifts affecting profitability relative to shareholders' equity.