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.