Copart Inc (CPRT)
Activity ratios
Short-term
Turnover ratios
| 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 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 54.61 | 49.51 |
| Receivables turnover | 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 | 5.28 | 4.93 |
| Payables turnover | — | — | 13.41 | — | — | — | 11.49 | — | — | — | 9.66 | — | — | — | 9.01 | — | — | — | 10.04 | — |
| Working capital turnover | 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 | 5.04 | 6.15 |
Inventory turnover for Copart, Inc. has been consistently increasing over the past eight quarters, indicating that the company has been more efficient in managing its inventory levels. This means that Copart is selling its inventory more frequently, which is a positive indicator of strong sales and operational efficiency.
Receivables turnover has shown some fluctuations but has generally remained at a healthy level, suggesting that the company is effective in collecting payments from its customers. A higher receivables turnover ratio indicates that Copart is collecting payments from its credit customers more quickly.
The payables turnover ratio has not been provided for all quarters, but based on the available data, it appears that Copart has been managing its payables efficiently by extending the time it takes to pay its suppliers. A higher payables turnover ratio generally signifies that the company is taking longer to pay its bills, which can be advantageous for managing cash flow.
Working capital turnover has been decreasing over the quarters, which may indicate that Copart is becoming less efficient in utilizing its working capital to generate sales. A declining working capital turnover ratio could suggest that the company is experiencing challenges in effectively utilizing its current assets to support its operations.
Overall, while Copart's inventory and receivables turnover ratios demonstrate efficiency in managing inventory and collecting payments, the payables turnover and working capital turnover ratios suggest potential areas for improvement in managing payables and working capital effectively.
Average number of days
| 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 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 6.68 | 7.37 |
| Days of sales outstanding (DSO) | days | 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 | 69.14 | 74.08 |
| Number of days of payables | days | — | — | 27.23 | — | — | — | 31.76 | — | — | — | 37.77 | — | — | — | 40.50 | — | — | — | 36.37 | — |
The activity ratios of Copart, Inc. provide insight into the efficiency of the company's operations.
1. Days of Inventory on Hand (DOH): The trend of this ratio has been decreasing from Q4 2022 to Q2 2024, indicating that Copart is able to manage its inventory more efficiently over time. However, the current level of around 25-26 days suggests that the company is able to quickly turn its inventory into sales, which is positive for its working capital management.
2. Days of Sales Outstanding (DSO): The DSO ratio shows a fluctuating pattern over the analyzed quarters, ranging from the mid-60 days to mid-70 days. Generally, a lower DSO is preferable as it implies that Copart is collecting its receivables more quickly. The increase seen in Q2 2024 compared to the previous quarter may indicate a potential slowdown in collections efficiency.
3. Number of Days of Payables: Unfortunately, there is missing data for the days of payables for several quarters, hampering a direct comparison. However, it is notable that the most recent available data in Q4 2023 and Q4 2022 show relatively high numbers of days of payables, which could indicate that Copart takes a longer time to pay its suppliers. This may have working capital implications, as a longer payable period can provide some financial flexibility but could also strain supplier relationships if not managed carefully.
In conclusion, Copart's activity ratios demonstrate generally efficient management of inventory and receivables, yet further analysis is needed to fully assess its payment practices and overall working capital efficiency.
Long-term
| 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 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 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 | 1.43 | 1.45 |
| Total asset turnover | 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 | 0.80 | 0.81 |
Copart, Inc.'s fixed asset turnover ratio has shown a slight decline in recent quarters, from 1.41 in Q4 2022 to 1.33 in Q2 2024. This indicates that the company is generating $1.33 in sales for every dollar invested in fixed assets. The decline could suggest that Copart may be less efficient in utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has also experienced a downward trend, dropping from 0.66 in Q4 2022 to 0.53 in Q2 2024. This ratio signifies that Copart generates $0.53 in sales for each dollar of total assets. The decrease in total asset turnover suggests that Copart's overall efficiency in generating revenue from all its assets has weakened over the quarters.
Overall, the declining trend in both fixed asset turnover and total asset turnover ratios may indicate potential inefficiencies in Copart's asset utilization and could warrant further investigation into the company's operational performance and asset management strategies.