Copart Inc (CPRT)
Return on total capital
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,572,020 | 1,486,570 | 1,375,000 | 1,136,430 | 821,069 |
| Long-term debt | US$ in thousands | — | 11,006 | 1,996 | 397,636 | 396,900 |
| Total stockholders’ equity | US$ in thousands | 7,548,560 | 5,987,440 | 4,625,600 | 3,529,200 | 2,489,520 |
| Return on total capital | 20.83% | 24.78% | 29.71% | 28.94% | 28.45% |
July 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,572,020K ÷ ($—K + $7,548,560K)
= 20.83%
Copart Inc's return on total capital has shown a downward trend over the past five years, starting at 28.45% in July 2020 and decreasing to 20.83% in July 2024. Despite the decreasing trend, the company has consistently maintained its return on total capital above 20% each year, indicating efficient utilization of both equity and debt capital to generate profits. The decreasing trend may suggest that Copart Inc's capital efficiency has slightly declined over the years, which could be a point of concern for the company's financial performance. Further analysis of the underlying factors affecting the return on total capital, such as changes in asset turnover, profit margins, or capital structure, would provide a more in-depth understanding of the company's financial health and operational efficiency.
Peer comparison
Jul 31, 2024