The short answer
Copart (CPRT) remains HALAL under ZakatInvest's qualitative core-business verdict, but its current total-assets financial screen fails on identifiable liquidity. The qualitative verdict is HALAL because Copart operates an online vehicle-auction and remarketing marketplace, and buying and selling used or salvage vehicles is generally permissible commerce. The current filing also reports substantial cash and Treasury holdings, net interest income, lease liabilities and varied seller and buyer categories, so the older “minimal debt and every screen passes” summary is no longer accurate.
This is a reproducible research screen, not a fatwa or investment recommendation. Scholars can differ on auction contracts, repossessed vehicles, insurance relationships, restricted cash and the treatment of interest earned on cash investments.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-30; calculated 2026-07-13.
0 / 9,649.036
4,199.712 / 9,649.036
4,148.614 / 9,649.036
38.813 / 1,237.066
- Financial
- Fails
- Overall
- Fails
Debt is 0.00% and receivables plus cash are 43.00%, both below the examined FTSE limits, but identifiable liquidity is 43.52% and exceeds the examined 33.333% limit. Disclosed net interest income is 3.14%; business activity remains incomplete.
- Financial
- Fails
- Overall
- Fails
Debt is 0.00%, but identifiable liquidity is 43.52% and receivables plus cash are 43.00%, exceeding the examined MSCI total-assets limits. This is a calculation against the named method, not an index-membership claim; the business allocation remains incomplete.
- Financial
- Fails
- Overall
- Fails
Debt is 0.00%, but identifiable conventional liquidity is 43.52% and exceeds the examined 33% Malaysia SAC limit. This is a calculation against SAC ratios, not an official SAC classification of a U.S.-listed security; screened business revenue remains unavailable.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Copart provides internet auction and vehicle-remarketing services, connecting sellers with licensed dismantlers, rebuilders, repair businesses, dealers, exporters and the public. Used and salvage vehicle commerce and marketplace service fees are generally permissible, while customer categories, repossessed vehicles, insurance relationships and end uses require continuing qualitative review.
Limitation: The filing identifies seller and buyer categories but does not isolate revenue by bank or finance-company consignor, vehicle type, customer end use, insurance relationship or other potentially prohibited category into a universal activity numerator.
Purification
Disclosed net interest income is $38.813 million, or 3.14% of quarterly revenue, but the filing does not provide a universal allocation for customer categories or end uses and the interest line is net. No fixed purification percentage is prescribed; readers should follow the scholar or methodology they use.
Inputs, assumptions and primary sources
- Debt is entered as zero because the April 30, 2026 balance sheet reports operating and finance lease liabilities but no conventional notes or drawn revolving debt. Current and non-current lease liabilities are not added to the interest-bearing debt input, but remain a qualitative consideration.
- Cash uses the reported $3.354142 billion of cash, cash equivalents and restricted cash. The filing says cash equivalents include bank deposits, U.S. Treasury bills and money-market accounts; the separately reported $845.570 million held-to-maturity securities balance is added without treating it as a second cash balance.
- Receivables use $794.472 million of accounts receivable net of the reported allowance for credit losses. Revenue uses $1.237066 billion for the three months ended April 30, 2026: $1.056080 billion of service revenue and $180.986 million of vehicle sales.
- The filing reports $38.813 million of net interest income for the quarter, or 3.14% of quarterly revenue. This is disclosed net interest income, not an estimate of every return earned on cash and held-to-maturity securities.
- Copart reports a general-purpose online auction and vehicle-remarketing model, but does not quantify a universal prohibited-revenue numerator by seller, buyer, vehicle category, insurance relationship or end use. No zero-haram-revenue claim is entered.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Current quantitative screen
The calculations above use Copart's official filing (Form 10-Q for the quarter ended April 30, 2026). Amounts are in USD millions and use total assets as the denominator so the inputs can be reproduced from the filing.
- Interest-bearing debt / assets: 0.00%, because the balance sheet reports no conventional notes or drawn revolving debt. Operating and finance lease liabilities are excluded from this debt input.
- Cash plus separately identified interest-bearing securities / assets: 43.52%, using $3.354142 billion of cash, cash equivalents and restricted cash plus $845.570 million of held-to-maturity securities.
- Receivables plus cash / assets: 43.00%, using $794.472 million of accounts receivable and the reported cash balance.
- Net interest income / revenue: 3.14%, using $38.813 million of net interest income against $1.237066 billion of Q3 fiscal 2026 revenue.
The reproduced FTSE Yasaar calculation fails on identifiable liquidity, while debt, receivables-plus-cash and disclosed net interest income are below the examined FTSE limits. MSCI's total-assets calculation fails on liquidity and receivables-plus-cash. Malaysia SAC fails on identifiable liquidity. Market-cap-denominator methods are not calculated because this site does not store a licensed, reproducible historical market-cap series.
What Copart does now
Copart provides sellers with internet auction and vehicle-remarketing services through its VB3 technology. In the three months ended April 30, 2026, it reported $1.056080 billion of service revenue and $180.986 million of vehicle sales, for total revenue of $1.237066 billion.
Sellers include insurance companies, dealers, individuals, charities, rental-car companies, banks, finance companies and fleet operators. Buyers include licensed dismantlers, rebuilders, repair businesses, used-vehicle dealers, exporters and the general public. Copart may earn service, auction, storage, transportation and vehicle-sale revenue, but the filing does not provide a universal Sharia-screened breakdown by customer or vehicle category.
Qualitative considerations
- Marketplace commerce: Copart connects sellers and buyers rather than operating a conventional lending business. Used, damaged and salvage vehicles are generally permissible goods, and an auction is a form of competitive commerce rather than a random game of chance.
- Seller and vehicle provenance: insurance claims, repossessions, bank and finance-company consignments, salvage titles, vehicle pooling and title-condition disclosures create contract and provenance questions even when the marketplace service itself is permissible.
- Interest-bearing liquidity: the filing reports cash equivalents that include bank deposits, Treasury bills and money-market accounts, plus held-to-maturity securities. Net interest income is disclosed and should not be silently treated as zero.
- Lease liabilities: operating and finance lease liabilities appear on the balance sheet. They are not included in the conventional debt ratio here, but their terms and accounting remain relevant to a scholar or methodology.
- Environmental and operational diligence: dismantling, fluids, parts recovery, recycling, cross-border exports, cybersecurity and environmental compliance matter to the qualitative assessment.
- Demand and concentration: weather-driven accident volumes, insurance total-loss rates, autonomous-vehicle adoption, land expansion and the economics of repair versus salvage can affect future activity and asset values.
What the financial evidence does—and does not—show
The filing supports a measured conclusion: Copart has no conventional debt input in this screen and a generally permissible marketplace core, but its cash and Treasury holdings are large relative to total assets and push several total-assets methodologies above their liquidity limits. The disclosed 3.14% net-interest figure is not a fixed purification prescription, and the filing does not prove that every seller, buyer or vehicle category is either permissible or prohibited.
Bottom line
Copart is presented as HALAL on ZakatInvest's qualitative core-business assessment, with current FTSE, MSCI total-assets and Malaysia liquidity screens failing. Investors who use a method that treats the cash and Treasury balances differently should review the inputs with a scholar. No fixed purification percentage is prescribed here.
Vehicle auctions and remarketing are generally permissible, while cash investments, interest income, seller categories and salvage contracts require continuing review.
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