Copart Inc (CPRT)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,763,766 | 1,645,377 | 1,630,996 | 1,584,558 | 1,573,532 | 1,604,130 | 1,585,745 | 1,571,850 | 1,487,047 | 1,402,615 | 1,356,718 | 1,338,443 | 1,357,075 | 1,354,954 | 1,310,953 | 1,220,372 | 1,141,814 | 1,044,413 | 913,139 | 865,655 |
| Interest expense (ttm) | US$ in thousands | 49,839 | 43,494 | 43,494 | 43,494 | 43,494 | 29,148 | 47,026 | 61,506 | 65,928 | 39,436 | 26,050 | 16,003 | 16,688 | 19,052 | 19,906 | 20,322 | 20,247 | 20,129 | 20,586 | 20,651 |
| Interest coverage | 35.39 | 37.83 | 37.50 | 36.43 | 36.18 | 55.03 | 33.72 | 25.56 | 22.56 | 35.57 | 52.08 | 83.64 | 81.32 | 71.12 | 65.86 | 60.05 | 56.39 | 51.89 | 44.36 | 41.92 |
July 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,763,766K ÷ $49,839K
= 35.39
The analysis of Copart Inc.'s interest coverage ratios over the provided period reveals a consistently strong capacity to meet interest obligations, though with notable fluctuations. Starting from October 31, 2020, the ratio was exceptionally high at approximately 41.92, indicating robust Earnings Before Interest and Taxes (EBIT) relative to interest expenses. Throughout 2021, this ratio increased substantially, reaching a peak of 60.05 as of October 31, 2021, reflecting enhanced profitability and high earnings relative to interest commitments.
During 2022, the interest coverage ratio continued its upward trend, peaking at 83.64 by October 31, 2022, underscoring an improved ability to service debt. However, a decline commenced in early 2023, with the ratio dropping to 52.08 in January and further decreasing to approximately 35.57 by April 2023. This reduction suggests a decrease in EBIT relative to interest expenses, possibly due to either rising interest expenses or relatively lower earnings.
Subsequently, the ratio experienced a notable decline reaching a low of approximately 22.56 as of July 31, 2023. Despite this decline, the ratio showed signs of marginal recovery in subsequent quarters, with an increase to 25.56 by October 31, 2023, and further improving to around 37.50 by January 31, 2024. The ratios projected into mid-2025 indicate a stabilization trend, hovering in the mid-30s, with values around 35.39 to 37.83, reflecting a consistent ability to cover interest obligations with earnings.
Overall, the interest coverage ratio for Copart Inc. demonstrates a historically strong position with fluctuations likely influenced by variations in earnings and interest expenses. The trend suggests that while the company maintained high coverage levels through 2021 and 2022, recent periods have seen a reduction but remain indicative of a stable capacity to meet interest obligations, contingent on ongoing earnings performance.