Copart Inc (CPRT)

Inventory turnover

		Jul 31, 2024	Apr 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	2,704,214	2,596,838	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
Inventory	US$ in thousands	43,639	46,764	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
Inventory turnover		61.97	55.53	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

July 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,704,214K ÷ $43,639K
= 61.97

The inventory turnover ratio for Copart Inc has shown a consistent trend over the past few years. The ratio has fluctuated between 35.08 and 65.69 times annually, indicating how efficiently the company is managing its inventory. A higher inventory turnover suggests that inventory is being sold more quickly, which is generally positive as it reduces the risk of obsolete inventory.

From the data provided, we observe an overall increasing trend in inventory turnover from October 2019 to July 2024, indicating an improvement in the management of inventory levels. This could be attributed to better inventory control, effective procurement practices, or strong demand for the company's products/services.

It is important for investors and analysts to monitor inventory turnover ratios regularly to assess the company's operational efficiency and inventory management practices. An increasing trend in inventory turnover over time is usually a positive indicator of a company's financial health.