Copart Inc (CPRT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.07 | 0.08 | 0.08 | 0.09 | 0.09 | 0.00 | 0.00 | 0.11 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.08 | 0.09 | 0.10 | 0.10 | 0.11 | 0.00 | 0.00 | 0.14 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.09 | 0.10 | 0.11 | 0.11 | 0.12 | 0.00 | 0.00 | 0.16 | 0.00 | 0.00 | 0.00 |
| 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 |
Copart Inc's solvency ratios have remained relatively stable over the past several quarters. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently remained at very low levels, indicating that the company has a low level of debt relative to its assets, capital, and equity. This reflects positively on Copart's financial health and ability to meet its financial obligations.
The financial leverage ratio, which measures the extent to which a company uses debt to finance its operations, has fluctuated slightly but generally increased over the period analyzed. This indicates that Copart has been gradually increasing its financial leverage by taking on more debt compared to equity.
Overall, Copart Inc's solvency ratios suggest that the company has a strong financial position with minimal reliance on debt for its operations. However, the upward trend in the financial leverage ratio may suggest a shift towards more debt financing in recent quarters.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage is a financial ratio that indicates a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio suggests that a company is more capable of meeting its interest obligations. Looking at Copart Inc's interest coverage over the past quarters, we observe significant fluctuations.
In the most recent quarter ending July 31, 2024, Copart Inc reported an interest coverage ratio of 36.14, indicating a strong ability to cover its interest expenses. However, in the quarter ending Jan 31, 2024, the interest coverage ratio was notably high at 1,584,817.00, which could be due to specific circumstances like abnormal income or accounting adjustments.
The trend shows fluctuations with some quarters reporting high interest coverage ratios, while others show lower ratios around the range of 40 to 50. The significant variation could be attributed to changes in interest expenses, income levels, or one-time events impacting the financial results.
It is essential for investors and stakeholders to closely monitor Copart Inc's interest coverage ratio over time to assess the company's financial health and sustainability in meeting its debt obligations. A consistent and healthy interest coverage ratio is crucial for long-term stability and growth.