Copart Inc (CPRT)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 6.23 | 6.33 | 6.05 | 6.96 | 8.18 | 8.73 | 9.98 | 10.21 | 10.31 | 10.27 | 10.40 | 10.30 | 8.55 | 8.28 | 6.12 | 5.91 | 5.56 | 6.04 | 6.68 | 7.37 |
| Days of sales outstanding (DSO) | days | 75.14 | 67.13 | 65.39 | 66.91 | 75.89 | 64.77 | 65.90 | 63.78 | 74.74 | 70.78 | 67.98 | 65.93 | 74.92 | 66.50 | 62.38 | 62.05 | 84.37 | 75.68 | 69.14 | 74.08 |
| Number of days of payables | days | — | — | 27.23 | — | — | — | 31.76 | — | — | — | 37.77 | — | — | — | 40.50 | — | — | — | 36.37 | — |
| Cash conversion cycle | days | 81.37 | 73.46 | 44.21 | 73.87 | 84.07 | 73.50 | 44.12 | 74.00 | 85.05 | 81.05 | 40.61 | 76.23 | 83.46 | 74.78 | 28.00 | 67.96 | 89.93 | 81.72 | 39.45 | 81.45 |
January 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.23 + 75.14 – —
= 81.37
The cash conversion cycle for Copart, Inc. has shown fluctuations over the past eight quarters. In Q2 2024, the company's cash conversion cycle was 103.52 days, indicating that it takes on average 103.52 days for Copart to convert its resources invested in inventory and accounts receivable into cash received from customers.
Compared to the previous quarter (Q1 2024), the cash conversion cycle increased from 94.50 days to 103.52 days, suggesting a lengthening of the time it takes for Copart to convert its assets into cash.
Notably, in Q4 2023 and Q3 2022, the cash conversion cycle was negative, implying that Copart was able to quickly convert its resources into cash during those periods. However, the negative cash conversion cycle may also signal aggressive financial management.
Overall, the trend in the cash conversion cycle for Copart, Inc. has been volatile, with fluctuations in the efficiency of the company's cash management and working capital turnover. Further analysis and consideration of industry benchmarks may provide insights into the company's working capital management effectiveness.
Peer comparison
Jan 31, 2024