Copart Inc (CPRT)
Solvency ratios
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.09 | 0.11 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.10 | 0.14 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.11 | 0.16 |
| Financial leverage ratio | 1.12 | 1.13 | 1.15 | 1.29 | 1.39 |
Copart Inc has consistently maintained a very low level of debt relative to its assets, capital, and equity over the past five years, with debt-to-assets, debt-to-capital, and debt-to-equity ratios all at 0.00 in the most recent fiscal year (2024). This indicates that the company operates with minimal dependence on debt to finance its operations and investments.
The financial leverage ratio, which measures the extent to which a company relies on debt to fund its operations, has shown a declining trend over the last five years. This declining trend suggests that Copart Inc has been reducing its reliance on debt financing in favor of equity financing, reducing its financial risk and improving its solvency position.
Overall, based on these solvency ratios, Copart Inc appears to have a strong financial position, with a conservative capital structure and low financial risk, which bodes well for its long-term stability and ability to weather economic downturns.
Coverage ratios
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 10.79 | 1,486,570.00 | 275,000.00 | 17,483.54 | 40.59 |
The interest coverage ratio for Copart Inc has shown significant fluctuations over the past five years, ranging from 40.59 in July 2020 to an unusually high value of 1,486,570.00 in July 2023, and then back down to 10.79 in July 2024.
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is more capable of servicing its debt payments from its operating income.
The substantial increase in interest coverage to 1,486,570.00 in July 2023 may be due to irregularities in the financial data or a one-time event that significantly inflated the numerator of the ratio. This outlier could be misleading and should be carefully examined for accuracy.
The return to a more normalized interest coverage ratio of 10.79 in July 2024 suggests a healthier financial position compared to the previous year. However, investors and analysts should monitor the trend over time to assess the company's ongoing ability to meet its interest obligations.