Copart Inc (CPRT)
Working capital turnover
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,256,810 | 3,956,090 | 3,481,860 | 2,689,660 | 2,205,580 |
| Total current assets | US$ in thousands | 4,418,180 | 3,262,600 | 2,202,460 | 1,702,610 | 963,759 |
| Total current liabilities | US$ in thousands | 628,567 | 492,769 | 440,889 | 421,031 | 356,044 |
| Working capital turnover | 1.12 | 1.43 | 1.98 | 2.10 | 3.63 |
July 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,256,810K ÷ ($4,418,180K – $628,567K)
= 1.12
The working capital turnover ratio of Copart Inc has decreased over the past five years. In July 2020, the ratio was at its highest point of 3.63, indicating that the company was generating $3.63 in revenue for every $1 of working capital. However, the ratio has steadily declined since then.
The downward trend may suggest that Copart Inc is becoming less efficient in utilizing its working capital to generate sales. A lower ratio could indicate issues with inventory management, accounts receivable collection, or overall operational efficiency.
It is important for Copart Inc to closely monitor and analyze the reasons behind this decline in working capital turnover to identify areas for improvement and ensure optimal financial performance in the future.
Peer comparison
Jul 31, 2024