Copart Inc (CPRT)

Inventory turnover measures how efficiently a company manages its inventory by showing how many times it sells and replaces its inventory over a period. Copart, Inc.'s inventory turnover has fluctuated over the past five years, as shown in the table.

In 2023, the inventory turnover ratio increased significantly to 15.37, indicating that the company sold and replaced its inventory 15.37 times during the year. This may suggest that Copart, Inc. more effectively managed its inventory in 2023, possibly through better inventory control and management processes.

Comparing this to the previous year, there was a notable improvement from 9.95 in 2022, indicating a substantial increase in inventory turnover, which could signify more efficient inventory management or an increase in sales relative to inventory levels.

In 2021, the inventory turnover was 7.70, a relatively low figure compared to the more recent years. This may indicate that the company held onto inventory for a longer period before selling and replacing it, which could result in higher carrying costs, potential obsolescence, or missed sales opportunities.

In 2020 and 2019, the inventory turnover ratios were 11.22 and 12.20, respectively. These figures suggest that Copart, Inc. managed its inventory efficiently during these years, but there was a decline in 2020 compared to the preceding and succeeding years.

Overall, fluctuations in inventory turnover can be indicative of changes in sales patterns, production processes, inventory management strategies, or broader economic conditions. It is important for stakeholders to monitor these trends and consider the underlying factors impacting inventory turnover to gain insights into the company's operational efficiency and financial performance.

Peer comparison

Jul 31, 2023