Copart Inc (CPRT)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,256,950	2,581,570	957,395	2,114,180	1,660,950	1,539,390	1,384,240	1,454,820	971,651	1,298,370	1,048,260	911,890	616,403	605,732	477,718	306,387	93,511	181,102	186,319	102,826
Short-term investments	US$ in thousands	1,411,120	48,982	1,406,590	—	—	—	—	224,889	374,866	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		5.07	4.21	4.80	4.17	3.41	3.05	3.14	3.74	3.22	2.64	2.49	2.21	1.66	1.49	1.34	1.07	0.27	0.56	0.66	0.35

January 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,256,950K + $1,411,120K) ÷ $526,023K
= 5.07

The cash ratio of Copart, Inc. has exhibited variability over the past eight quarters, ranging from a low of 3.32 in Q1 2023 to a high of 5.40 in Q2 2024. This ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

A higher cash ratio indicates that Copart, Inc. has a stronger ability to meet its short-term obligations using its readily available cash. The upward trend in the cash ratio from Q1 2023 to Q2 2024 suggests an improvement in the company's liquidity position during this period.

By contrast, a lower cash ratio like the one seen in Q1 2023 indicates a relatively weaker ability to cover short-term liabilities with cash alone. However, it is important to consider the industry benchmarks and compare Copart, Inc.'s cash ratio with its peers to gain a better understanding of its liquidity management.

Overall, a rising trend in the cash ratio can be viewed positively as it signifies an improved ability to handle short-term financial obligations without facing liquidity constraints.