Copart Inc (CPRT)

Fixed asset turnover

		Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Revenue	US$ in thousands	3,956,090	3,481,860	2,689,660	2,205,580	2,041,960
Property, plant and equipment	US$ in thousands	2,844,340	2,485,760	2,296,620	1,941,720	1,427,730
Fixed asset turnover		1.39	1.40	1.17	1.14	1.43

July 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,956,090K ÷ $2,844,340K
= 1.39

The fixed asset turnover ratio measures a company's ability to generate sales from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.

Looking at Copart, Inc.'s fixed asset turnover over the past five years, we observe a fluctuating trend. In 2023, the fixed asset turnover ratio was 1.36, a slight decrease from the previous year's 1.41. This indicates that the company generated $1.36 in sales for every dollar invested in fixed assets.

In 2021, the ratio was 1.17, showing a decrease from the previous year, possibly indicating inefficiency in utilizing fixed assets to generate sales. However, this was followed by an increase to 1.14 in 2020, suggesting improved efficiency in asset utilization.

In 2019, the ratio was notably higher at 1.43, indicating a strong performance in generating sales from fixed assets.

Overall, the fluctuation in the fixed asset turnover ratio suggests varying levels of efficiency in utilizing fixed assets to generate sales over the years. Further analysis of the company's operational and investment strategies could provide insights into the factors driving these fluctuations.