Copart Inc (CPRT)

Days of sales outstanding (DSO)

		Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Receivables turnover		5.58	5.54	5.37	5.85	5.28
DSO	days	65.38	65.88	67.94	62.38	69.14

July 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.58
= 65.38

To analyze Copart, Inc.'s days of sales outstanding (DSO) over the past five years, we can see a fluctuating trend in the DSO ratio. In 2023, the DSO ratio increased to 66.84 days from 65.52 days in 2022. This suggests that the company took a slightly longer time to collect its accounts receivable in 2023 compared to the previous year.

Looking at the trend over the past five years, the DSO ratio has shown some variability. It peaked at 69.14 days in 2019, decreased to 62.38 days in 2020, and then increased again in 2021 and 2023. This variability may indicate changes in the company's credit policy, customer payment behavior, or operational efficiency in collecting receivables.

Analyzing the DSO ratio can provide insights into the company's ability to collect outstanding receivables. A higher DSO may indicate inefficiencies in collecting receivables, potential credit risks, or challenges in managing working capital. Conversely, a lower DSO suggests a more favorable situation, as the company is able to collect receivables more quickly.

Overall, the trend in Copart, Inc.'s DSO ratio suggests some variability over the past five years, and further analysis of the company's receivables management and credit policies may be warranted to assess the potential impact on the company's financial performance and liquidity.