Copart Inc (CPRT)

Payables 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
Payables	US$ in thousands	193,333	180,016	187,170	163,237	132,919
Payables turnover		13.99	13.41	11.49	9.66	9.01

July 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,704,310K ÷ $193,333K
= 13.99

Copart Inc's payables turnover has shown a consistent increasing trend over the past five years. The ratio has increased from 9.01 in July 2020 to 13.99 in July 2024. This indicates that Copart Inc is paying off its suppliers more frequently relative to its cost of goods sold. A higher payables turnover ratio generally reflects more efficient management of accounts payable, as the company is effectively managing its payment obligations. The increasing trend suggests that Copart Inc has been improving its relationship with suppliers and managing its working capital more efficiently over the years. This could potentially lead to better cash flow management and stronger supplier relationships for the company in the future.