Copart Inc (CPRT)

Days of inventory on hand (DOH)

		Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Inventory turnover		60.37	36.58	35.05	59.65	54.61
DOH	days	6.05	9.98	10.41	6.12	6.68

July 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 60.37
= 6.05

To analyze Copart, Inc.'s days of inventory on hand (DOH), we can see a declining trend from 2019 to 2023. DOH measures the average number of days that inventory is held before being sold, and a lower DOH is generally preferable as it indicates that the company is selling inventory more quickly.

In 2019, Copart had 29.92 days of inventory on hand, which increased to 32.53 days in 2020, suggesting a slight deterioration in inventory management. However, this trend reversed in 2021 with DOH decreasing to 47.42 days, which indicates more efficient inventory turnover.

Subsequently, in 2022 and 2023, Copart continued to improve its inventory management significantly, achieving DOH of 36.67 days and 23.74 days respectively. This downward trend in DOH reflects the company's ability to manage its inventory more effectively, potentially reducing carrying costs and the risk of obsolescence.

Overall, the declining trend in Copart's DOH from 2019 to 2023 indicates a positive improvement in the company's inventory management efficiency, which can lead to better cash flow and profitability.