Copart Inc (CPRT)

Debt-to-equity ratio

		Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020
Long-term debt	US$ in thousands	—	11,006	1,996	397,636	396,900
Total stockholders’ equity	US$ in thousands	7,548,560	5,987,440	4,625,600	3,529,200	2,489,520
Debt-to-equity ratio		0.00	0.00	0.00	0.11	0.16

July 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $7,548,560K
= 0.00

From the provided data, we observe that Copart Inc had a debt-to-equity ratio of 0.00 for the years 2024, 2023, and 2022. This indicates that the company had no debt as compared to its equity during these years, suggesting a strong financial position with a lower reliance on debt financing.

In the preceding years, the debt-to-equity ratio was 0.11 in 2021 and 0.16 in 2020. This indicates that there was a slight increase in leverage in these years, with the company having a higher level of debt relative to its equity. However, it is important to note that these ratios are relatively low, indicating a conservative approach to debt management by Copart Inc.

Overall, the trend of decreasing debt-to-equity ratio over the years suggests that Copart Inc has been effectively managing its debt levels and maintaining a stable capital structure. This may imply a lower financial risk for the company and potentially higher investor confidence in its ability to meet its financial obligations.