Copart Inc (CPRT)

Quick ratio

Jul 31, 2024 Jul 31, 2023 Jul 31, 2022 Jul 31, 2021 Jul 31, 2020
Cash 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
Receivables US$ in thousands 785,877 708,612 628,455 500,640 376,947
Total current liabilities US$ in thousands 628,567 492,769 440,889 421,031 356,044
Quick ratio 6.69 6.24 4.57 3.68 2.40

July 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,514,110K + $1,908,050K + $785,877K) ÷ $628,567K
= 6.69

The quick ratio of Copart Inc has been showing a positive trend over the last five years, reflecting the company's ability to meet its short-term obligations with its most liquid assets. The quick ratio has increased steadily from 2.40 in 2020 to 6.69 in 2024, indicating a significant improvement in the company's liquidity position.

A quick ratio above 1.0 suggests that the company has an adequate level of liquid assets to cover its current liabilities. Copart Inc's quick ratio has consistently been well above 1.0 in the past five years, indicating a strong liquidity position and ability to fulfill its short-term obligations without relying extensively on inventory.

The gradual increase in the quick ratio over the years highlights an improvement in the company's liquidity management and ability to convert its current assets into cash quickly. This trend is a positive indicator of Copart Inc's financial health and its ability to weather short-term financial challenges.

Overall, the upward trend in Copart Inc's quick ratio demonstrates the company's strong liquidity position and efficient management of its current assets in meeting short-term obligations.


Peer comparison

Jul 31, 2024