Copart Inc (CPRT)

Working capital 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 current assets	US$ in thousands	3,262,600	2,202,460	1,702,610	963,759	687,167
Total current liabilities	US$ in thousands	492,769	440,889	421,031	356,044	282,004
Working capital turnover		1.43	1.98	2.10	3.63	5.04

July 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,956,090K ÷ ($3,262,600K – $492,769K)
= 1.43

The working capital turnover for Copart, Inc. has shown a declining trend over the past five years. In 2019, the working capital turnover was at its highest at 5.04, indicating that the company generated 5.04 times the revenue for each dollar of working capital invested. However, this ratio has steadily declined in the subsequent years, reaching 1.40 in 2023.

A decreasing trend in the working capital turnover may suggest that the company is becoming less efficient in utilizing its working capital to generate sales. This could be a cause for concern as it may indicate inefficiencies in managing the company's current assets and liabilities. Further analysis and investigation into the company's working capital management practices and operational efficiency would be necessary to fully assess the implications of this trend.