Copart Inc (CPRT)

Financial leverage ratio

		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	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019
Total assets	US$ in thousands	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	3,455,260	3,161,580	3,048,600	2,855,940
Total stockholders’ equity	US$ in thousands	7,548,560	7,196,190	6,812,710	6,436,640	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	2,489,520	2,281,010	2,124,730	1,926,600
Financial leverage ratio		1.12	1.11	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	1.39	1.39	1.43	1.48

July 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,427,760K ÷ $7,548,560K
= 1.12

The financial leverage ratio of Copart Inc has shown some fluctuations over the past few years. The ratio has generally been increasing, indicating a higher level of financial leverage or debt used by the company to finance its operations and growth. Specifically, the ratio increased from 1.12 in Jan 2020 to 1.48 in Oct 2019, representing a considerable rise in leverage during this period.

It is important to note that a higher financial leverage ratio implies that the company is relying more on debt financing, which can increase financial risk in the event of economic downturns or unfavorable market conditions. However, it can also indicate that the company is taking advantage of debt to fuel growth opportunities and enhance shareholder returns.

While the trend of increasing financial leverage may raise concerns about the company's risk profile, it is essential to consider other financial metrics and market conditions to assess the overall financial health and sustainability of Copart Inc.