Copart Inc (CPRT)

Number of days of payables

		Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Payables turnover		13.41	11.49	9.66	9.01	10.04
Number of days of payables	days	27.23	31.77	37.80	40.50	36.37

July 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 13.41
= 27.23

To analyze Copart, Inc.'s number of days of payables, we can see a consistent decrease in the number of days of payables over the last five years. This indicates that the company is taking less time to pay its suppliers and vendors, which could be indicative of improved liquidity and operational efficiency.

In 2023, the number of days of payables stood at 106.93 days, reflecting a substantial reduction from 2022 and continuing the trend of decreasing payables turnover. This might signify better negotiation power with suppliers or more efficient inventory management.

The declining trend in the number of days of payables could suggest that Copart, Inc. is managing its working capital more effectively, potentially freeing up cash flows that can be utilized for investment or debt reduction. However, it is important to consider the balance between stretching payables and maintaining good relationships with suppliers.

Overall, the decreasing number of days of payables for Copart, Inc. indicates positive trends in liquidity management and operational efficiency over the past five years.