Copart Inc (CPRT)

Return on equity (ROE)

		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	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019
Net income (ttm)	US$ in thousands	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	699,907	687,870	733,124	695,790
Total stockholders’ equity	US$ in thousands	7,548,560	7,196,190	6,812,710	6,436,640	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	2,489,520	2,281,010	2,124,730	1,926,600
ROE		18.06%	19.29%	19.91%	20.58%	20.67%	20.63%	20.75%	22.16%	23.57%	24.86%	26.66%	26.27%	26.54%	26.04%	24.02%	25.16%	28.11%	30.16%	34.50%	36.11%

July 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,363,020K ÷ $7,548,560K
= 18.06%

The return on equity (ROE) of Copart Inc has shown a generally positive trend over the periods indicated in the table. ROE is a key metric used to evaluate the profitability and efficiency of a company in generating profits from shareholders' equity.

Copart Inc's ROE has ranged from 18.06% to 36.11% over the past 20 quarters. The company's performance peaked at 36.11% in the October 2019 quarter, indicating strong profitability relative to shareholders' equity. Subsequently, the ROE decreased but remained above 20% for most of the quarters.

The downward trend that began after October 2019 could be a point of interest for further analysis. Despite the gradual decline, the ROE figures for Copart Inc remained relatively high compared to the industry average, suggesting efficient management of shareholders' equity and profitability.

It is important to note that a high ROE indicates that the company is effectively using shareholders' equity to generate profits. However, investors should also consider other financial ratios and factors to gain a comprehensive understanding of the company's financial health and performance.