Copart Inc (CPRT)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,584,817	1,570,442	1,486,569	1,420,745	1,374,576	1,356,379	1,374,997	1,351,704	1,307,060	1,217,953	1,136,426	1,041,711	911,203	862,970	821,069	805,956	817,806	778,017	724,761	670,424
Long-term debt	US$ in thousands	—	—	11,006	22,368	1,946	1,969	1,996	402,733	403,829	408,940	397,636	397,633	—	—	396,900	—	—	—	—	—
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
Return on total capital		23.26%	24.40%	24.78%	25.30%	26.36%	27.94%	29.71%	28.42%	29.09%	28.98%	28.94%	28.56%	30.97%	31.83%	28.45%	35.33%	38.49%	40.38%	40.75%	41.41%

January 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,584,817K ÷ ($—K + $6,812,710K)
= 23.26%

The return on total capital for Copart, Inc. has exhibited a declining trend over the past eight quarters. Beginning at 27.71% in Q3 2022, the ratio decreased steadily to 22.96% in Q2 2024. This indicates that the company's ability to generate profits from its total capital has weakened over time. It is imperative for stakeholders to further investigate the factors contributing to this downward trend in order to identify potential areas for improvement and to enhance the company's overall financial performance.