Copart Inc (CPRT)
Payables turnover
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,547,315 | 2,538,373 | 2,485,610 | 2,407,898 | 2,329,571 | 2,263,147 | 2,194,862 | 2,165,035 | 2,132,527 | 2,094,330 | 2,059,593 | 1,993,487 | 1,894,700 | 1,784,031 | 1,632,936 | 1,478,351 | 1,349,420 | 1,233,501 | 1,188,679 | 1,194,397 |
| Payables | US$ in thousands | 591,831 | 576,923 | 562,205 | 582,215 | 193,333 | 506,795 | 473,856 | 495,201 | 180,016 | 441,466 | 439,271 | 446,974 | 187,170 | 398,414 | 367,699 | 411,249 | 163,237 | 359,239 | 324,108 | 359,816 |
| Payables turnover | 4.30 | 4.40 | 4.42 | 4.14 | 12.05 | 4.47 | 4.63 | 4.37 | 11.85 | 4.74 | 4.69 | 4.46 | 10.12 | 4.48 | 4.44 | 3.59 | 8.27 | 3.43 | 3.67 | 3.32 |
July 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,547,315K ÷ $591,831K
= 4.30
The payables turnover ratio for Copart Inc exhibits notable fluctuations over the analyzed period from October 2020 to July 2025. Initially, the ratio was relatively low at 3.32 times in October 2020 and experienced slight increases and decreases in the subsequent quarters, reaching a peak of 10.12 times in July 2022. This peak indicates a period where the company was paying its suppliers approximately ten times annually, reflecting either improved payment efficiency, changes in purchasing patterns, or alterations in credit terms.
Post-peak, the ratios generally stabilized with moderate fluctuations, maintaining levels in the range of approximately 4.14 to 4.74 times from late 2022 through early 2024. This suggests a period of relatively steady supplier payment practices or stable credit terms. Notably, there is a significant upward movement again starting around July 2024, reaching a high of 12.05 times in July 2024. Such an increase may imply a strategic shift toward quicker payments or renegotiation of credit terms favoring shorter payment cycles.
Subsequent ratios, particularly in late 2024 and early 2025, show a slight decline from the peak but remain elevated relative to earlier periods, around 4.14 to 4.42 times. This sustained high level indicates that Copart Inc continues to pay its payables more frequently within the year compared to the initial period, potentially reflecting enhanced operational efficiencies or supplier payment strategies.
Overall, the payables turnover trend demonstrates periods of rapid payment cycles interspersed with phases of stabilization, which could be associated with changes in procurement strategies, supplier relationships, or credit policies. The significant peaks in July 2022 and July 2024 highlight points where the company either improved its payables management or was subject to changes in credit terms, suggesting a responsive approach to managing working capital and supplier relationships over time.