Copart Inc (CPRT)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,090,900 | 9,672,220 | 9,187,350 | 8,869,490 | 8,427,760 | 8,010,630 | 7,598,520 | 7,333,790 | 6,737,880 | 6,349,800 | 5,932,410 | 5,593,680 | 5,308,860 | 5,443,870 | 5,136,960 | 4,918,850 | 4,562,140 | 4,281,950 | 3,934,440 | 3,741,190 |
| 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 |
| Financial leverage ratio | 1.10 | 1.10 | 1.11 | 1.12 | 1.12 | 1.12 | 1.12 | 1.14 | 1.13 | 1.14 | 1.14 | 1.15 | 1.15 | 1.25 | 1.26 | 1.30 | 1.29 | 1.32 | 1.34 | 1.38 |
July 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,090,900K ÷ $9,187,030K
= 1.10
The financial leverage ratio for Copart Inc. demonstrated a consistent downward trend over the analyzed period from October 31, 2020, through July 31, 2025. Initially recorded at 1.38 in late October 2020, the ratio gradually declined, reaching approximately 1.12 by October 31, 2024. This steady decrease indicates a reduction in the company’s leverage, suggesting that the company has been progressively relying less on debt relative to equity.
Throughout this period, the ratio oscillated minimally around the 1.12 to 1.14 level from late 2022 onward, reflecting a stabilization in the company’s leverage position. The persistent decline in leverage ratio over nearly five years signifies a strategic effort by Copart Inc. to de-leverage—potentially by paying down debt, increasing equity, or both—to reduce financial risk.
Overall, the sustained reduction in the financial leverage ratio is indicative of a shift towards a more conservative capital structure, diminishing the company's financial risk exposure, and possibly enhancing its creditworthiness. The stability observed in the last few quarters suggests a mature leverage profile, with the company maintaining a relatively low and stable level of leverage relative to its equity base.