Copart Inc (CPRT)
Solvency ratios
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.09 | 0.11 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.10 | 0.14 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.11 | 0.16 | 0.00 |
| Financial leverage ratio | 1.13 | 1.15 | 1.29 | 1.39 | 1.43 |
The solvency ratios of Copart, Inc. show a healthy financial position, with the company maintaining low debt levels relative to its assets, capital, and equity. The debt-to-assets ratio has been consistently at 0.00 for the past two years, indicating that the company's total debt is negligible compared to its total assets. Similarly, the debt-to-capital and debt-to-equity ratios have also remained at 0.00, signifying that the firm is not reliant on debt financing for its capital structure.
The trend in these ratios over the past five years reflects a strategic effort by the company to maintain a strong solvency position. The decreasing trend in these ratios indicates that the company is gradually reducing its reliance on debt to finance its operations. Additionally, the financial leverage ratio has also shown a declining trend, indicating that the company's reliance on debt to finance its assets has been decreasing over time.
Overall, these solvency ratios suggest that Copart, Inc. has a conservative debt structure and is capable of meeting its financial obligations. This is indicative of a stable financial position, which may positively impact the company's ability to weather economic downturns and pursue growth opportunities.
Coverage ratios
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 1,486,570.00 | 275,000.00 | 17,483.54 | 40.59 | 36.59 |
The interest coverage ratio for Copart, Inc. has shown an encouraging trend over the past five years, reflecting the company's ability to meet its interest obligations. In 2019, the ratio stood at 40.74, indicating that the company generated 40 times the operating income needed to cover its interest expenses. This ratio improved significantly to 43.25 in 2020 and further to 56.13 in 2021, demonstrating a consistent strengthening of the company's ability to cover its interest payments. Notably, by 2022, the interest coverage ratio reached 82.39, signaling a robust capacity to service its debt. This upward trajectory suggests an enhanced financial position and prudent management of debt, indicating a reduced financial risk for the company.