Copart Inc (CPRT)

Days of inventory on hand (DOH)

		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	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019
Inventory turnover		61.97	55.53	58.59	57.65	60.37	52.42	44.62	41.81	36.59	35.73	35.39	35.56	35.08	35.43	42.71	44.06	59.65	61.71	65.69	60.45
DOH	days	5.89	6.57	6.23	6.33	6.05	6.96	8.18	8.73	9.98	10.21	10.31	10.27	10.40	10.30	8.55	8.28	6.12	5.91	5.56	6.04

July 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 61.97
= 5.89

The Days of Inventory on Hand (DOH) ratio for Copart Inc has shown a fluctuating trend over the past several quarters. The company has demonstrated efficiency in managing its inventory levels with a downward trend in DOH from a high of 10.98 days in July 2022 to a low of 5.56 days in January 2020. This suggests that Copart has been able to turn inventory into sales at a faster pace, which is generally a positive sign.

However, it is noteworthy that the DOH ratio has slightly increased over the most recent quarters, reaching 5.89 days in the latest period ending July 2024. This increase may indicate a potential buildup of inventory or a slower turnover rate, which could impact liquidity and profitability if not managed effectively.

Overall, while Copart Inc has generally shown efficiency in managing inventory levels, monitoring the trend of the DOH ratio is crucial to ensure optimal inventory management practices and maintain operational effectiveness in the future.