Copart Inc (CPRT)

Payables turnover

		Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Cost of revenue	US$ in thousands	2,413,170	2,150,690	1,576,180	1,197,780	1,143,620
Payables	US$ in thousands	180,016	187,170	163,237	132,919	113,947
Payables turnover		13.41	11.49	9.66	9.01	10.04

July 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,413,170K ÷ $180,016K
= 13.41

The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable for a period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be a positive sign.

Analyzing Copart, Inc.'s payables turnover ratio over the past five years shows an increasing trend. The ratio has improved from 2.24 in 2019 to 3.41 in 2023. This indicates that Copart has been managing its accounts payable more efficiently over the years.

A higher payables turnover ratio could suggest that the company is paying its suppliers more promptly, taking advantage of discounts, and effectively managing its working capital. However, it is essential to assess the ratio in conjunction with other financial indicators and industry benchmarks to gain a comprehensive understanding of Copart, Inc.'s financial performance and management of its accounts payable.