Copart Inc (CPRT)
Return on total capital
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,763,766 | 1,645,377 | 1,630,996 | 1,584,558 | 1,573,532 | 1,604,130 | 1,585,745 | 1,571,850 | 1,487,047 | 1,402,615 | 1,356,718 | 1,338,443 | 1,357,075 | 1,354,954 | 1,310,953 | 1,220,372 | 1,141,814 | 1,044,413 | 913,139 | 865,655 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,187,030 | 8,781,190 | 8,301,260 | 7,896,310 | 7,524,010 | 7,171,250 | 6,787,600 | 6,411,420 | 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 |
| Return on total capital | 19.20% | 18.74% | 19.65% | 20.07% | 20.91% | 22.37% | 23.36% | 24.52% | 24.84% | 25.08% | 26.02% | 27.58% | 29.34% | 31.13% | 32.05% | 32.17% | 32.35% | 32.14% | 31.03% | 31.93% |
July 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,763,766K ÷ ($—K + $9,187,030K)
= 19.20%
The analysis of Copart Inc.'s return on total capital over the period from October 2020 to July 2025 indicates a clear downward trend. Starting at approximately 31.93% in October 2020, the ratio experienced a slight decrease by January 2021 to around 31.03%, then demonstrated marginal increases reaching a peak of about 32.35% in July 2021. Subsequently, the return on total capital gradually declined over the following periods.
Between October 2021 and October 2022, the ratio declined from approximately 32.17% to 27.58%, indicating a diminishing efficiency in generating returns relative to the total capital employed. This downward trajectory continued through 2023 and into 2024, with the ratio decreasing to approximately 24.52% by October 2023, and further to around 20.07% in October 2024. The trend persisted in early 2025, with the ratio falling below 20%, reaching approximately 19.65% in January 2025, before a slight uptick to around 19.20% in July 2025.
Overall, the data signifies that Copart Inc.'s return on total capital has experienced a steady decline over this period. This reduction indicates a potential decrease in the company's efficiency in deploying its total capital to generate profits, which could be reflective of competitive pressures, changes in business dynamics, or shifts in operational effectiveness. Despite some short-term fluctuations, the overarching trend suggests a waning capacity to produce high returns relative to the total capital invested over the analyzed timeframe.