Copart Inc (CPRT)
Debt-to-capital ratio
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.10 | 0.14 | 0.00 |
July 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $11,006K ÷ ($11,006K + $5,987,440K)
= 0.00
The debt-to-capital ratio of Copart, Inc. has shown a consistent downward trend from 2019 to 2023. In 2019, the ratio stood at 0.18, indicating that 18% of the company's capital was financed through debt. Over the subsequent years, the ratio steadily decreased to 0.10 in 2021 and then further decreased to 0.00 in 2022 and 2023, implying that the company's capital structure relied less on debt financing and more on equity. This reduction in the ratio signifies an improved financial position and reduced financial risk as the company relies less on debt to fund its operations and expansion. It is indicative of a healthier balance sheet and may instill confidence in investors and creditors regarding the company's financial stability.
Peer comparison
Jul 31, 2023