Copart Inc (CPRT)
Current ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,418,180 | 3,262,600 | 2,202,460 | 1,702,610 | 963,759 |
| Total current liabilities | US$ in thousands | 628,567 | 492,769 | 440,889 | 421,031 | 356,044 |
| Current ratio | 7.03 | 6.62 | 5.00 | 4.04 | 2.71 |
July 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,418,180K ÷ $628,567K
= 7.03
The current ratio of Copart Inc has shown a consistent increasing trend over the past five years, reflecting a strong liquidity position. As of July 31, 2024, the company's current ratio stands at 7.03, indicating that it has $7.03 in current assets for every $1 of current liabilities. This represents a significant improvement compared to the ratios in the previous years, which were 6.62 in 2023, 5.00 in 2022, 4.04 in 2021, and 2.71 in 2020.
A current ratio above 1 is generally considered healthy, as it suggests that a company is able to meet its short-term obligations using its current assets. Copart Inc's increasing current ratio over the years indicates a strengthening liquidity position and a decreasing risk of financial distress due to short-term obligations. This trend may be attributed to effective working capital management practices or improvements in the company's overall financial health.
Peer comparison
Jul 31, 2024