Copart Inc (CPRT)
Liquidity ratios
| Jul 31, 2024 | Apr 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 7.03 | 7.36 | 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 |
| Quick ratio | 6.69 | 6.99 | 6.71 | 5.42 | 6.24 | 5.54 | 4.98 | 4.31 | 4.57 | 5.05 | 4.77 | 3.78 | 3.68 | 3.29 | 2.93 | 2.49 | 2.40 | 2.39 | 1.77 | 1.93 |
| Cash ratio | 5.44 | 5.48 | 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 |
Copart Inc has consistently maintained strong liquidity ratios over the past few periods. The current ratio has shown an increasing trend, reaching a peak of 7.36 in April 2024 before slightly declining to 7.03 in July 2024. This indicates that Copart has more than enough current assets to cover its short-term obligations.
Similarly, the quick ratio has also exhibited a positive trend, peaking at 6.99 in April 2024 and then slightly decreasing to 6.69 in July 2024. This ratio excludes inventory from current assets, providing a more conservative measure of liquidity, and suggests that Copart can meet its short-term liabilities without relying on inventory.
The cash ratio, which is the most stringent measure of liquidity, has also been consistently strong, showing an upward trend. It reached 5.48 in April 2024 before dropping slightly to 5.44 in July 2024. This indicates that Copart has a significant amount of cash on hand to cover its immediate obligations.
Overall, the liquidity ratios of Copart Inc demonstrate a strong financial position with ample resources to meet its short-term obligations, indicating good financial health and a lower risk of financial distress.
Additional liquidity measure
| Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 47.20 | 78.09 | 81.37 | 73.46 | 44.21 | 73.87 | 84.07 | 73.50 | 44.12 | 74.00 | 85.05 | 81.05 | 40.61 | 76.23 | 83.46 | 74.78 | 28.00 | 67.96 | 89.93 | 81.72 |
The Cash Conversion Cycle (CCC) for Copart Inc has shown fluctuations over the periods provided. The CCC represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter CCC indicates better efficiency in managing working capital and liquidity.
Over the past few periods, Copart Inc's CCC has ranged from 28 to 89.93 days. The company's most recent CCC stood at 47.20 days as of July 31, 2024, which is an improvement compared to the previous quarter.
It is worth noting that a decreasing trend in the CCC is generally favorable, as it suggests that the company is managing its operations more efficiently, potentially leading to improved cash flows and profitability. Conversely, an increasing CCC may indicate inefficiencies in managing inventory, accounts receivable, or accounts payable, which could potentially impact liquidity and cash flow.
Further analysis, including benchmarking against industry peers and historical trends, would provide deeper insights into Copart Inc's working capital management and efficiency in converting resources into cash.