Copart Inc (CPRT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.10 | 1.10 | 1.11 | 1.12 | 1.12 | 1.12 | 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 |
The analysis of Copart Inc.'s solvency ratios reveals a consistent financial position characterized by minimal or nonexistent leverage across multiple reporting periods. Specifically, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are all recorded at 0.00 throughout the entire observed timeframe, from October 2020 through July 2025. This indicates that the company has not utilized debt financing during these periods, signaling a lack of leverage and a potentially conservative capital structure.
The financial leverage ratio, however, demonstrates a declining trend over time. Starting at approximately 1.38 in October 2020, it gradually decreases to around 1.10 by July 2025. Despite the absence of reported debt, the leverage ratio suggests that the company’s capital structure is primarily equity-based, with minimal reliance on borrowed funds. The slight reduction over time indicates a gradual decrease in leverage or a stable equity position, emphasizing the firm’s low debt levels and strong solvency profile.
Overall, the data suggests that Copart Inc. maintains an exceptionally conservative financial structure with negligible leverage, which likely translates into a high degree of financial stability and low risk of insolvency. This structure can be advantageous in downturn scenarios, providing flexibility and resilience, yet may limit certain growth strategies that rely on debt financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratios for Copart Inc. over various reporting periods exhibit a consistently strong capacity to meet interest obligations, reflecting the company's robust financial position. Starting from October 31, 2020, with a ratio of approximately 41.92, the interest coverage displayed a general upward trend, peaking at 83.64 on October 31, 2022. This indicates that during this period, the company earned approximately 83.64 times its interest expense, signifying an exceptionally comfortable margin for debt servicing.
Following this peak, a notable decline is observed, with the ratio decreasing to 52.08 in January 2023 and reaching a low of 22.56 on July 31, 2023. The significant reduction in this period suggests a decrease in earnings relative to interest expenses, which may warrant closer scrutiny to understand underlying factors such as increased interest obligations or fluctuations in operating income.
However, subsequent periods show an improvement, with the interest coverage rebounding to 25.56 by October 31, 2023, and further rising to 36.43 by October 31, 2024. Projections for future periods indicate a stable trend, with ratios remaining above 35 through the end of the forecast horizon, including 37.50 in January 2025 and 37.83 in April 2025. This stability suggests the company maintains sufficient earnings to comfortably cover its interest expenses in both historical and projected periods.
Overall, Copart Inc. has maintained a strong interest coverage ratio throughout the analyzed period, with temporary fluctuations that do not significantly impair its ability to service debt. The positive long-term trend and projected stability indicate prudent financial management and a solid financial footing for meeting interest obligations.