Copart Inc (CPRT)

Working capital turnover

		Jul 31, 2024	Apr 30, 2024	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
Revenue (ttm)	US$ in thousands	4,255,687	4,318,170	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
Total current assets	US$ in thousands	4,418,180	4,149,130	3,748,490	3,584,890	3,262,600	3,001,030	2,638,780	2,364,600	2,202,460	2,457,430	2,189,370	2,039,780	1,702,610	1,499,370	1,225,470	1,138,180	963,759	794,152	731,963	744,076
Total current liabilities	US$ in thousands	628,567	563,419	526,023	624,417	492,769	506,564	487,623	504,477	440,889	449,095	417,860	491,911	421,031	413,045	371,015	407,536	356,044	286,568	342,837	323,318
Working capital turnover		1.12	1.20	1.30	1.39	1.43	1.52	1.71	1.92	1.98	1.67	1.78	1.88	2.10	2.27	2.67	3.07	3.63	4.38	5.72	5.07

July 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,255,687K ÷ ($4,418,180K – $628,567K)
= 1.12

The working capital turnover ratio for Copart Inc has been fluctuating over the past 20 quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio implies better efficiency in using working capital to generate sales.

From Oct 2019 to Jul 2020, the ratio increased steadily from 4.38 to 5.07, indicating an improving efficiency in utilizing working capital during that period. However, from Jul 2020 to Jul 2023, the ratio experienced some fluctuations but generally showed a decreasing trend.

From Jan 2021 to Jul 2023, there was a noticeable decline in the working capital turnover ratio, dropping from 2.67 to 1.43. This suggests a decrease in the efficiency of working capital management in generating sales during that period.

The ratio then gradually increased from Jul 2023 to Jan 2024, reaching 1.30, indicating a slight improvement in efficiency. However, the ratio continued to fluctuate in the subsequent periods.

Overall, Copart Inc's working capital turnover ratio has shown variability over the past quarters, with periods of both improvement and decline in efficiency in utilizing working capital to generate sales revenue. This may indicate fluctuations in the company's working capital management and operational efficiency during the period under review.