Copart Inc (CPRT)

Working capital turnover

		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	Jul 31, 2019	Apr 30, 2019
Revenue (ttm)	US$ in thousands	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	2,041,957	1,948,605
Total current assets	US$ in thousands	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	687,167	613,585
Total current liabilities	US$ in thousands	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	282,004	296,906
Working capital turnover		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	5.04	6.15

January 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,194,000K ÷ ($3,748,490K – $526,023K)
= 1.30

The working capital turnover ratio for Copart, Inc. has displayed a fluctuating trend over the past few quarters. The ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates better utilization of working capital.

In Q2 2024, the working capital turnover ratio decreased to 1.26 from 1.35 in the previous quarter. This could suggest a potential slowdown in the company's ability to generate revenue using its working capital efficiently.

Comparing the current ratio to the figures from earlier quarters, it is evident that Copart's working capital turnover has been gradually declining since Q1 2023. The company's working capital turnover peaked at 1.99 in Q4 2022 but has been on a downward trend since then.

Overall, the declining trend in working capital turnover may indicate inefficiencies in how Copart is managing its working capital to generate revenue. It is important for the company to closely monitor and potentially improve this ratio to ensure optimal utilization of its resources.