Copart Inc (CPRT)

Interest coverage

		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	Jul 31, 2019	Apr 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	724,761	670,424
Interest expense (ttm)	US$ in thousands	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	19,810	19,807
Interest coverage		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	36.59	33.85

January 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,584,817K ÷ $1K
= 1,584,817.00

Interest coverage measures a company's ability to meet its interest obligations with its operating income. In the case of Copart, Inc., the interest coverage ratio has shown a positive trend over the past eight quarters. The data indicates that there was no specific value reported for the interest coverage ratio in Q3 2023, Q4 2023, Q1 2024, and Q2 2024.

However, the available data shows an increasing trend in the interest coverage ratio from Q3 2022 to Q1 2023, indicating an improvement in Copart's ability to cover its interest expenses with its operating income during that period. In Q1 2023 and Q4 2022, the interest coverage ratio stood at 189.46 and 82.39, respectively, which indicates that the company was able to cover its interest expenses approximately 189 and 82 times over with its operating income during those quarters.

This upward trend in the interest coverage ratio suggests that Copart, Inc. has been efficiently managing its operating income in relation to its interest expenses, potentially indicating a stronger financial position and lower risk of defaulting on its debt obligations. Investors and stakeholders may view this positively as it reflects the company's ability to honor its debt commitments.