Copart Inc (CPRT)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	5.42	5.10	4.86	5.44	5.58	5.46	4.81	5.64	5.54	5.72	4.88	5.16	5.37	5.54	4.87	5.49	5.85	5.88	4.33	4.82
Payables turnover	13.99	—	—	—	13.41	—	—	—	11.49	—	—	—	9.66	—	—	—	9.01	—	—	—
Working capital turnover	1.12	1.20	1.30	1.39	1.43	1.52	1.71	1.92	1.98	1.67	1.78	1.88	2.10	2.27	2.67	3.07	3.63	4.38	5.72	5.07

Copart Inc's inventory turnover ratio has been consistently high over the past few years, indicating that the company efficiently manages its inventory levels and quickly sells its products. The increasing trend in inventory turnover suggests an improvement in inventory management efficiency.

The receivables turnover ratio shows that Copart Inc collects its accounts receivable approximately 5 times a year on average. The stability of this ratio indicates that the company has a consistent approach to collecting payments from its customers.

While data on payables turnover is not available for all periods, the figures show that Copart Inc effectively manages its accounts payable, with a turnover ratio above 9 indicating that the company pays its suppliers relatively quickly.

The working capital turnover ratio demonstrates how well Copart Inc utilizes its working capital to generate sales. The increasing trend in this ratio indicates that the company is becoming more efficient in using its resources to generate revenue.

Overall, the activity ratios suggest that Copart Inc has effective control over its inventory, receivables, payables, and working capital, indicating strong operational efficiency and effective management of its resources.

Average number of days

		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
Days of inventory on hand (DOH)	days	5.89	6.57	6.23	6.33	6.05	6.96	8.18	8.73	9.98	10.21	10.31	10.27	10.40	10.30	8.55	8.28	6.12	5.91	5.56	6.04
Days of sales outstanding (DSO)	days	67.40	71.51	75.14	67.13	65.39	66.91	75.89	64.77	65.90	63.78	74.74	70.78	67.98	65.93	74.92	66.50	62.38	62.05	84.37	75.68
Number of days of payables	days	26.10	—	—	—	27.23	—	—	—	31.76	—	—	—	37.77	—	—	—	40.50	—	—	—

Copart Inc's activity ratios, including Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insight into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- The trend for DOH shows a slight increase from 5.56 days in October 2019 to 5.89 days in July 2024.
- The company has been managing its inventory efficiently, with a relatively stable DOH ratio over the past few years.
- Lower DOH indicates that Copart is effectively turning over its inventory, which is favorable for liquidity and working capital management.

2. Days of Sales Outstanding (DSO):
- DSO has fluctuated over the periods, with the highest at 84.37 days in January 2020 and the lowest at 62.05 days in October 2020.
- A lower DSO suggests that Copart is collecting its receivables more quickly, improving cash flows and reducing the risk of bad debts.
- The company has shown some variability in the collection period, which may warrant further investigation into its credit policies and customer payment behaviors.

3. Number of Days of Payables:
- The data is incomplete, with information missing for several periods.
- The available data shows a decrease in the number of days of payables from 40.50 days in October 2020 to 26.10 days in July 2024.
- A lower number of days of payables indicates that Copart is paying its suppliers more quickly, which can have implications for cash flow management and relationships with suppliers.

In conclusion, Copart Inc has demonstrated efficient inventory management and collection of receivables, as evidenced by its DOH and DSO ratios. However, further analysis of payables management is needed to fully assess the company's overall working capital efficiency.

Long-term

	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
Fixed asset turnover	1.34	1.41	1.38	1.40	1.39	1.40	1.39	1.38	1.40	1.40	1.33	1.25	1.17	1.11	1.05	1.08	1.14	1.21	1.24	1.38
Total asset turnover	0.50	0.54	0.55	0.56	0.59	0.60	0.62	0.64	0.66	0.62	0.61	0.59	0.59	0.58	0.58	0.60	0.64	0.70	0.73	0.75

The fixed asset turnover ratio for Copart Inc has been relatively stable over the past few years, ranging from 1.11 to 1.41. This indicates that the company generates $1.11 to $1.41 in sales for every dollar invested in fixed assets. The consistency in this ratio suggests that Copart is efficiently utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has shown some variation, fluctuating between 0.50 and 0.75. This ratio reflects how well the company is utilizing all its assets to generate sales. The trend indicates that Copart's ability to generate revenue from its total assets has been somewhat volatile over the periods analyzed.

Overall, while the fixed asset turnover ratio suggests efficient utilization of fixed assets, the total asset turnover ratio shows some inconsistency in utilizing all assets effectively to generate sales. Copart may want to focus on improving the efficiency of utilizing all its assets to drive better overall performance.