Copart Inc (CPRT)

Inventory turnover

		Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020
Cost of revenue	US$ in thousands	2,704,310	2,413,170	2,150,690	1,576,180	1,197,780
Inventory	US$ in thousands	43,639	39,973	58,791	44,968	20,080
Inventory turnover		61.97	60.37	36.58	35.05	59.65

July 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,704,310K ÷ $43,639K
= 61.97

Based on the data provided, the inventory turnover of Copart Inc has shown a fluctuating trend over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the inventory is replaced within a specific period.

In July 2024, the inventory turnover ratio of Copart Inc was 61.97, which indicates that the company sold and replaced its inventory approximately 61.97 times during that year. This represents a slight increase from the previous year's turnover of 60.37.

Looking further back, in July 2023, the inventory turnover ratio was 36.58, which was lower compared to the more recent years. However, there was an improvement from July 2022 when the ratio was 35.05.

The highest inventory turnover in the past five years was observed in July 2020, with a ratio of 59.65, indicating a robust turnover of inventory during that period.

Overall, the recent increase in inventory turnover for Copart Inc suggests an improvement in inventory management efficiency, as the company is selling its inventory at a faster pace compared to previous years. A higher inventory turnover ratio generally indicates that a company is managing its inventory effectively, minimizing carrying costs, and potentially increasing profitability.