Copart Inc (CPRT)
Total asset turnover
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,956,090 | 3,481,860 | 2,689,660 | 2,205,580 | 2,041,960 |
| Total assets | US$ in thousands | 6,737,880 | 5,308,860 | 4,562,140 | 3,455,260 | 2,547,620 |
| Total asset turnover | 0.59 | 0.66 | 0.59 | 0.64 | 0.80 |
July 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,956,090K ÷ $6,737,880K
= 0.59
The total asset turnover of Copart, Inc. has exhibited a declining trend over the past five years, falling from 0.80 in 2019 to 0.57 in 2023. This indicates that the company generated $0.57 in revenue for every dollar of assets in 2023, down from $0.80 in 2019.
A declining total asset turnover could suggest inefficiency in asset utilization or a decrease in sales relative to the size of the asset base. It may be indicative of the company's inability to effectively generate sales from its assets, which could potentially lead to concerns about the company's operational efficiency and capital allocation.
Further investigation into the reasons behind this trend, such as changes in the company's business model, asset base, or sales strategy, would be necessary to fully understand the implications of the declining total asset turnover.
Peer comparison
Jul 31, 2023