Copart Inc (CPRT)
Interest coverage
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,572,020 | 1,486,570 | 1,375,000 | 1,136,430 | 821,069 |
| Interest expense | US$ in thousands | 145,673 | 1 | 5 | 65 | 20,230 |
| Interest coverage | 10.79 | 1,486,570.00 | 275,000.00 | 17,483.54 | 40.59 |
July 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,572,020K ÷ $145,673K
= 10.79
The interest coverage ratio for Copart Inc has been fluctuating over the past five years, indicating varying levels of ability to cover its interest expenses with its operating income.
In July 2024, Copart Inc had an interest coverage ratio of 10.79, which suggests the company generated sufficient operating income to cover its interest obligations. This represents a strong ability to meet interest payments.
However, in July 2023, the interest coverage ratio spiked abnormally to 1,486,570.00, which is likely a data error. Such an extremely high ratio is not feasible and indicates a possible anomaly in the calculation or reporting of financial data.
In July 2022, the interest coverage ratio was 275,000.00, also likely a data error as it is an excessively high value, indicating an issue with the reported figures.
In contrast, the interest coverage ratios for July 2021 and July 2020 were 17,483.54 and 40.59, respectively, showing a moderate ability to cover interest expenses during those periods.
Overall, the interest coverage ratio for Copart Inc has displayed significant variability, with several instances of abnormal values that require further investigation and verification of financial data integrity.
Peer comparison
Jul 31, 2024