Copart Inc (CPRT)

Return on equity (ROE)

		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	Jul 31, 2019	Apr 30, 2019
Net income (ttm)	US$ in thousands	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	591,693	547,945
Total stockholders’ equity	US$ in thousands	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	1,778,380	1,618,850
ROE		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%	33.27%	33.85%

January 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,356,378K ÷ $6,812,710K
= 19.91%

ROE is a key financial metric that measures a company's ability to generate profits from its shareholders' equity. Copart, Inc.'s ROE has been relatively stable over the past eight quarters, ranging from 19.98% to 24.86%. The decreasing trend from 23.57% in Q4 2022 to 19.98% in Q2 2024 may indicate a decline in the company's profitability relative to its equity base.

While Copart's ROE remains above 15%, which is often considered a benchmark for a good return, the downward trend raises concerns about the company's efficiency in utilizing its equity to generate profits for shareholders. Investors should closely monitor future quarterly ROE figures to assess whether the declining trend continues or if the company can reverse it through improved operational performance or strategic initiatives.