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.