Copart Inc (CPRT)
Cash ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,514,110 | 957,395 | 1,384,240 | 1,048,260 | 477,718 |
| Short-term investments | US$ in thousands | 1,908,050 | 1,406,590 | — | — | — |
| Total current liabilities | US$ in thousands | 628,567 | 492,769 | 440,889 | 421,031 | 356,044 |
| Cash ratio | 5.44 | 4.80 | 3.14 | 2.49 | 1.34 |
July 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,514,110K
+ $1,908,050K)
÷ $628,567K
= 5.44
The cash ratio of Copart Inc has shown a consistent upward trend over the last five years, indicating an improvement in the company's liquidity position. The ratio has more than quadrupled from 1.34 in July 2020 to 5.44 in July 2024. This suggests that Copart Inc has significantly increased its ability to cover its short-term obligations with cash and cash equivalents.
The steady increase in the cash ratio reflects a positive trend in Copart Inc's liquidity management and financial health. The company's cash reserves relative to its current liabilities have strengthened over the years, providing a buffer against unforeseen financial challenges. A high cash ratio indicates that Copart Inc has sufficient liquid assets to meet its short-term obligations without relying heavily on borrowing or selling other assets.
Overall, the upward movement in Copart Inc's cash ratio demonstrates a prudent approach to managing liquidity and indicates a strong financial position that may enhance the company's ability to navigate uncertainties and capitalize on opportunities in the future.
Peer comparison
Jul 31, 2024