Copart Inc (CPRT)
Working capital turnover
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,646,970 | 4,590,870 | 4,506,410 | 4,363,240 | 4,236,830 | 4,165,421 | 4,059,991 | 3,996,565 | 3,869,517 | 3,755,314 | 3,673,425 | 3,584,161 | 3,500,921 | 3,366,163 | 3,160,132 | 2,909,703 | 2,692,511 | 2,469,540 | 2,285,990 | 2,244,099 |
| Total current assets | US$ in thousands | 5,754,630 | 5,359,150 | 4,966,780 | 4,733,120 | 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 |
| Total current liabilities | US$ in thousands | 683,281 | 657,132 | 629,637 | 714,855 | 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 |
| Working capital turnover | 0.92 | 0.98 | 1.04 | 1.09 | 1.12 | 1.16 | 1.26 | 1.35 | 1.40 | 1.51 | 1.71 | 1.93 | 1.99 | 1.68 | 1.78 | 1.88 | 2.10 | 2.27 | 2.68 | 3.07 |
July 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,646,970K ÷ ($5,754,630K – $683,281K)
= 0.92
The analysis of Copart Inc.'s working capital turnover ratio over the specified period reveals a consistent downward trend from October 31, 2020, through July 31, 2025. Initially, the ratio stood at 3.07, indicating that the company's working capital was generated approximately three times each year during that period. Subsequently, there was a steady decline, with the ratio decreasing to 2.68 by January 31, 2021, and further diminishing to 1.12 by July 31, 2024.
This downward trajectory continued unabated, culminating in a ratio of 0.92 as of July 31, 2025. The persistent decline suggests that the company's efficiency in utilizing working capital to generate sales has considerably reduced over this timeframe.
Such a trend may imply increased working capital levels relative to sales, potential operational or liquidity challenges, or strategic shifts resulting in a less asset-light or more capital-intensive approach. Alternatively, it could reflect changes in inventory management, receivables, or payables that have impacted the overall working capital efficiency.
Overall, the data indicates a notable deterioration in Copart Inc.'s working capital turnover, warranting further investigation into underlying causes such as changes in operational procedures, credit policies, or market conditions affecting the company's working capital management.