Copart Inc (CPRT)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.42	5.10	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
DSO	days	67.40	71.51	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

July 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.42
= 67.40

To analyze Copart Inc's days of sales outstanding (DSO) trend, we calculated the DSO ratio for each quarter over the past two years. DSO measures how efficiently a company collects its accounts receivable, indicating the average number of days it takes to collect payment after making a sale.

From October 2019 to July 2024, Copart Inc's DSO fluctuated within a range of 62.05 to 84.37 days. The trend shows some variability, with DSO peaking at 84.37 days in January 2020 and hitting its lowest point at 62.05 days in January 2020 and October 2020.

Overall, Copart Inc's DSO has decreased slightly since early 2022, suggesting an improvement in the company's collection efficiency. However, the recent increase in DSO from April 2024 to July 2024 may indicate a slower collection of accounts receivable compared to the previous period.

It is important for Copart Inc to monitor its DSO closely and implement appropriate credit and collection policies to ensure a healthy cash flow and efficient working capital management. By managing DSO effectively, the company can improve its liquidity position and financial performance.