Copart Inc (CPRT)

Current 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
Total current assets	US$ in thousands	3,748,490	3,584,890	3,262,600	3,001,030	2,638,780	2,364,600	2,202,460	2,457,430	2,189,370	2,039,780	1,702,610	1,499,370	1,225,470	1,138,180	963,759	794,152	731,963	744,076	687,167	613,585
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
Current ratio		7.13	5.74	6.62	5.92	5.41	4.69	5.00	5.47	5.24	4.15	4.04	3.63	3.30	2.79	2.71	2.77	2.14	2.30	2.44	2.07

January 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,748,490K ÷ $526,023K
= 7.13

The current ratio of Copart, Inc. has been showing a positive trend over the past few quarters. In Q2 2024, the current ratio stood at 7.13, indicating a strong ability to cover its short-term obligations with current assets. This is a significant improvement compared to the previous quarters, where the current ratio ranged from 4.69 to 6.62.

The increasing current ratio reflects that Copart, Inc. has been effectively managing its current assets relative to its current liabilities. A higher current ratio is generally considered favorable as it suggests a healthier liquidity position and a reduced risk of financial distress.

Overall, the upward trend in Copart's current ratio indicates that the company has been successful in maintaining a solid financial position and managing its short-term obligations efficiently.