Copart Inc (CPRT)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,572,023 | 1,603,096 | 1,584,817 | 1,570,442 | 1,486,569 | 1,420,745 | 1,374,576 | 1,356,379 | 1,374,997 | 1,351,704 | 1,307,060 | 1,217,953 | 1,136,426 | 1,041,711 | 911,203 | 862,970 | 821,069 | 805,956 | 817,806 | 778,017 |
| Interest expense (ttm) | US$ in thousands | 43,494 | 0 | 1 | 1 | 1 | 1 | 1 | 3 | 5 | 10 | 25 | 46 | 65 | 4,962 | 10,749 | 15,640 | 20,230 | 19,930 | 19,451 | 19,770 |
| Interest coverage | 36.14 | — | 1,584,817.00 | 1,570,442.00 | 1,486,569.00 | 1,420,745.00 | 1,374,576.00 | 452,126.33 | 274,999.40 | 135,170.40 | 52,282.40 | 26,477.24 | 17,483.48 | 209.94 | 84.77 | 55.18 | 40.59 | 40.44 | 42.04 | 39.35 |
July 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,572,023K ÷ $43,494K
= 36.14
The interest coverage ratio for Copart Inc has shown significant variability over the past few quarters. In the most recent quarter ended July 31, 2024, the interest coverage ratio stood at a healthy 36.14, indicating that the company generated sufficient operating income to cover its interest expenses by 36 times. This suggests a strong ability to meet interest obligations from operating profits.
However, in the quarter ended Jan 31, 2024, the interest coverage ratio was notably high at 1,584,817.00, which may be due to unusual or non-recurring factors distorting the calculation. This extreme value should be interpreted with caution as it may not reflect the company's typical financial performance.
In the quarters preceding April 2024, Copart Inc maintained consistent and stable interest coverage ratios above 40, indicating a robust ability to service its debt obligations. In contrast, earlier quarters such as Oct 31, 2021, and July 31, 2021, displayed comparatively lower interest coverage ratios, indicating potential financial strain during those periods.
Overall, the trend in Copart Inc's interest coverage ratio fluctuates significantly, but the recent strong ratios suggest a healthy financial position with the ability to comfortably cover interest expenses. Monitoring this ratio over time will be essential to track the company's financial health and debt servicing capacity.
Peer comparison
Jul 31, 2024