Copart Inc (CPRT)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	4,194,000	4,111,004	3,955,141	3,787,204	3,682,543	3,573,966	3,480,629	3,362,071	3,155,086	2,904,141	2,688,209	2,466,243	2,284,539	2,243,897	2,205,583	2,222,499	2,225,255	2,135,013	2,041,957	1,948,605
Receivables	US$ in thousands	863,387	756,053	708,612	694,262	765,628	634,225	628,455	587,495	646,055	563,174	500,640	445,461	468,903	408,812	376,947	377,822	514,378	442,679	386,791	395,466
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

January 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,194,000K ÷ $863,387K
= 4.86

Copart, Inc.'s receivables turnover ratio has shown a fluctuating trend over the past eight quarters. In Q3 2022, the receivables turnover ratio was highest at 5.73, indicating that on average, the company collected its accounts receivable approximately 5.73 times during that quarter. Subsequently, the ratio decreased slightly but remained relatively stable in the range of 4.70 to 5.46 until Q4 2023 when it peaked at 5.46. However, in Q1 and Q2 2024, the ratio decreased to 5.29 and 4.70 respectively.

A high receivables turnover ratio generally suggests that Copart, Inc. efficiently collects outstanding receivables, which is a positive sign as it indicates effective credit policies and prompt collection efforts. Conversely, a declining ratio could indicate potential issues with collection practices or changes in customer payment behaviors, which may require further investigation by the management to address any underlying reasons for the decrease. Overall, while the fluctuations in the receivables turnover ratio for Copart, Inc. may warrant monitoring, the company has generally maintained a relatively healthy turnover of accounts receivable over the analyzed period.