Copart Inc (CPRT)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	4,194,000	4,111,004	3,955,141	3,787,204	3,682,543	3,573,966	3,480,629	3,362,071	3,155,086	2,904,141	2,688,209	2,466,243	2,284,539	2,243,897	2,205,583	2,222,499	2,225,255	2,135,013	2,041,957	1,948,605
Property, plant and equipment	US$ in thousands	3,042,710	2,943,540	2,844,340	2,710,930	2,656,270	2,582,480	2,485,760	2,402,810	2,376,010	2,318,700	2,296,620	2,227,530	2,175,350	2,072,060	1,941,720	1,838,300	1,789,330	1,545,710	1,427,730	1,340,690
Fixed asset turnover		1.38	1.40	1.39	1.40	1.39	1.38	1.40	1.40	1.33	1.25	1.17	1.11	1.05	1.08	1.14	1.21	1.24	1.38	1.43	1.45

January 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,194,000K ÷ $3,042,710K
= 1.38

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. In the case of Copart, Inc., the fixed asset turnover ratio has remained relatively stable over the past eight quarters, ranging from 1.33 to 1.41. This indicates that the company is effectively utilizing its fixed assets to generate sales.

A fixed asset turnover ratio of greater than 1 suggests that Copart, Inc. is generating more revenue per dollar of investment in fixed assets. This can be interpreted as a positive sign of operational efficiency and asset utilization.

Although there have been minor fluctuations in the fixed asset turnover ratio over the quarters, the overall trend suggests that Copart, Inc. has maintained a consistent level of efficiency in generating sales from its fixed assets. This stability can be indicative of effective management of fixed assets and operational processes within the company.

Overall, the fixed asset turnover ratio analysis indicates that Copart, Inc. is efficiently using its fixed assets to generate revenue and is maintaining a consistent level of operational efficiency in this aspect of its business.