Copart Inc (CPRT)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	2,508,291	2,457,641	2,413,272	2,358,992	2,323,421	2,252,404	2,150,887	2,036,436	1,874,961	1,713,551	1,577,605	1,389,984	1,289,965	1,244,539	1,197,781	1,222,509	1,216,299	1,177,720	1,143,615	1,104,457
Inventory	US$ in thousands	42,812	42,631	39,973	44,999	52,071	53,866	58,791	56,988	52,979	48,194	44,968	39,229	30,203	28,244	20,080	19,809	18,515	19,482	20,941	22,309
Inventory turnover		58.59	57.65	60.37	52.42	44.62	41.81	36.59	35.73	35.39	35.56	35.08	35.43	42.71	44.06	59.65	61.71	65.69	60.45	54.61	49.51

January 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,508,291K ÷ $42,812K
= 58.59

Copart, Inc. has demonstrated a consistent trend of improving inventory turnover over the past few quarters. The inventory turnover ratio, which measures how many times a company's inventory is sold and replaced within a specific period, increased steadily from Q3 2022 to Q1 2024. This indicates that Copart has been effectively managing its inventory levels and swiftly converting inventory into sales.

The highest inventory turnover ratio was recorded in Q4 2023 at 15.37, reflecting efficient inventory management during that period. Despite slight fluctuations, the overall trend indicates that Copart is efficiently managing its inventory turnover, which is crucial for maintaining optimal working capital levels and maximizing profitability.

A consistently high inventory turnover ratio suggests that Copart is effectively managing its inventory levels and efficiently converting inventory into sales, which is a positive indicator of operational efficiency and financial health.