Gross Margin % is calculated as gross profit divided by its revenue. Copart's Gross Profit for the
three
months ended in Jan. 2024 was $464 Mil. Copart's Revenue for the
three
months ended in Jan. 2024 was $1,020 Mil. Therefore, Copart's Gross Margin % for the quarter that ended in Jan. 2024 was 45.50%.
The historical rank and industry rank for Copart's Gross Margin % or its related term are showing as below:
CPRT'
s Gross Margin % Range Over the Past 10 Years
Min: 40.27 Med: 43.82 Max: 49.88
Current: 46.04
During the past 13 years, the highestGross Margin % of Copart was 49.88%. The lowest was 40.27%. And the median was 43.82%.
CPRT's Gross Margin % is ranked better than 65.09% of 994
companies
in the Business Services industry
Industry Median: 34.85
vs CPRT: 46.04
Copart had a gross margin of 45.50% for the quarter that ended in Jan. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Copart was 1.50% per year.
Copart Gross Margin % Historical Data
The historical data trend for Copart's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Business Services subindustry, Copart's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Copart Gross Margin % Distribution
For the Business Services industry and Industrials sector, Copart's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Copart's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Copart (NAS:CPRT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Copart had a gross margin of 45.50% for the quarter that ended in Jan. 2024 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Copart Gross Margin % Related Terms
Thank you for viewing the detailed overview of Copart's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Based in Dallas, Copart operates an online salvage vehicle auction with operations in 11 countries across North America, Europe, and the Middle East, facilitating over 3.5 million transactions annually. The company utilizes its virtual bidding platform, VB3, to connect vehicle sellers with over 750,000 registered buyers around the world. Buyers primarily consist of vehicle dismantlers, rebuilders, individuals and used vehicle retailers. About 80% of Copart's vehicle volume is supplied by auto insurance companies holding vehicles deemed a total loss. Copart also offers services such as vehicle transportation, storage, title transfer, and salvage value estimation. The company primarily operates on a consignment basis and collects fees based on the vehicle's final selling price.
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