Copart Inc (CPRT)
Cash ratio
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,780,530 | 1,514,110 | 957,395 | 1,384,240 | 1,048,260 |
| Short-term investments | US$ in thousands | 2,008,540 | 1,908,050 | 1,406,590 | 0 | — |
| Total current liabilities | US$ in thousands | 683,281 | 628,567 | 492,769 | 440,889 | 421,031 |
| Cash ratio | 7.01 | 5.44 | 4.80 | 3.14 | 2.49 |
July 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,780,530K
+ $2,008,540K)
÷ $683,281K
= 7.01
The analysis of Copart Inc.'s cash ratio over the period from July 31, 2021, to July 31, 2025, reveals a consistent upward trend, indicating enhancements in the company's liquidity position. Specifically, the cash ratio increased from 2.49 in 2021 to 3.14 in 2022, reflecting an improvement in the company's ability to cover its short-term obligations with its cash and cash equivalents. This upward trajectory continued, with the ratio reaching 4.80 in 2023, which further signifies a strengthening liquidity buffer.
The positive trend persisted into the subsequent years, with the ratio rising to 5.44 in 2024 and reaching 7.01 by 2025. Such increases suggest that Copart Inc. has been increasingly accumulating liquid assets relative to its current liabilities, enhancing its capacity to meet immediate financial commitments without relying on other current assets or external financing.
Overall, the substantial and steady growth in the cash ratio over this period underscores a deliberate strengthening of liquidity management and cash holdings, positioning the company with a robust liquidity profile. This could imply prudent financial strategies, better cash management, or strategic reserve-building to buffer against potential short-term cash flow fluctuations.