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GuruFocus has detected 3 Warning Signs with Copart Inc \$CPRT.
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Copart Inc (NAS:CPRT)
Debt-to-Equity
0.80 (As of Jan. 2017)

Copart Inc's current portion of long-term debt for the quarter that ended in Jan. 2017 was \$146 Mil. Copart Inc's long-term debt for the quarter that ended in Jan. 2017 was \$566 Mil. Copart Inc's total equity for the quarter that ended in Jan. 2017 was \$896 Mil. Copart Inc's debt to equity for the quarter that ended in Jan. 2017 was 0.79.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

Definition

Debt to Equity measures the financial leverage a company has.

Copart Inc's Debt to Equity Ratio for the fiscal year that ended in Jul. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (76.151 + 564.341) / 774.456 = 0.83

Copart Inc's Debt to Equity Ratio for the quarter that ended in Jan. 2017 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (146.151 + 565.926) / 895.703 = 0.79

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Copart Inc Annual Data

 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 deb2equity 0.01 0.02 0.00 0.00 0.68 0.79 0.51 0.30 0.67 0.83

Copart Inc Quarterly Data

 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 deb2equity 0.27 0.64 0.59 0.67 0.62 0.92 0.98 0.83 0.92 0.80
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