Copart Inc (CPRT)

Return on total capital

		Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	1,486,570	1,375,000	1,136,430	821,069	724,761
Long-term debt	US$ in thousands	11,006	1,996	397,636	396,900	—
Total stockholders’ equity	US$ in thousands	5,987,440	4,625,600	3,529,200	2,489,520	1,778,380
Return on total capital		24.78%	29.71%	28.94%	28.45%	40.75%

July 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,486,570K ÷ ($11,006K + $5,987,440K)
= 24.78%

Copart, Inc.'s return on total capital has exhibited a slight decline from 29.71% in 2022 to 24.78% in 2023. The trend over the past five years has shown relatively consistent high levels of return, ranging from 28.27% to 32.87%. This demonstrates the company's ability to generate earnings from its total capital base, which includes both equity and debt. The decrease in 2023 could be attributed to various factors such as changes in the company's capital structure, profitability, or asset utilization. Further analysis of the company's financial statements and performance drivers would be necessary to fully understand the reasons behind this trend.