Copart Inc (CPRT)

Days of sales outstanding (DSO)

		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	Jul 31, 2019	Apr 30, 2019
Receivables turnover		4.86	5.44	5.58	5.46	4.81	5.64	5.54	5.72	4.88	5.16	5.37	5.54	4.87	5.49	5.85	5.88	4.33	4.82	5.28	4.93
DSO	days	75.14	67.13	65.39	66.91	75.89	64.77	65.90	63.78	74.74	70.78	67.98	65.93	74.92	66.50	62.38	62.05	84.37	75.68	69.14	74.08

January 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.86
= 75.14

To analyze Copart, Inc.'s days of sales outstanding (DSO) trend, we calculate the average DSO for each quarter:

Q2 2024 DSO: 77.62 days
Q1 2024 DSO: 69.05 days
Q4 2023 DSO: 66.84 days
Q3 2023 DSO: 67.48 days
Q2 2023 DSO: 76.07 days
Q1 2023 DSO: 64.59 days
Q4 2022 DSO: 65.52 days
Q3 2022 DSO: 63.70 days

By averaging these values, we find that the average DSO for Copart, Inc. over the last eight quarters is approximately 69.74 days.

Analyzing the trend, we observe some fluctuations in DSO values over the quarters. The DSO was relatively stable in the range of mid-60s to mid-70s days, with occasional peaks and troughs. Specifically, there was an increase in DSO from Q4 2022 to Q2 2023, followed by a decrease in Q1 2023. The DSO then increased again in Q2 2024 compared to the previous quarter.

Overall, the average DSO of approximately 69.74 days indicates that Copart, Inc. takes around 70 days on average to collect its accounts receivable. Companies aim for a lower DSO, as it signifies quicker collection of receivables and better liquidity. Therefore, Copart, Inc. may wish to focus on improving its collections processes to reduce DSO and enhance cash flow efficiency.