Copart Inc (CPRT)
Quick ratio
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,780,530 | 1,514,110 | 957,395 | 1,384,240 | 1,048,260 |
| Short-term investments | US$ in thousands | 2,008,540 | 1,908,050 | 1,406,590 | 0 | — |
| Receivables | US$ in thousands | 763,391 | 785,877 | 708,612 | 628,455 | 500,640 |
| Total current liabilities | US$ in thousands | 683,281 | 628,567 | 492,769 | 440,889 | 421,031 |
| Quick ratio | 8.13 | 6.69 | 6.24 | 4.57 | 3.68 |
July 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,780,530K
+ $2,008,540K
+ $763,391K)
÷ $683,281K
= 8.13
The quick ratio of Copart Inc. demonstrates a consistent and substantial upward trend over the specified period from July 31, 2021, to July 31, 2025. As of July 31, 2021, the quick ratio stood at 3.68, indicating that the company maintained highly liquid assets capable of covering its current liabilities nearly 3.7 times over. This robust liquidity position increased markedly to 4.57 by July 31, 2022, reflecting an improvement in the company's immediate liquidity. The upward trajectory continued, with the ratio reaching 6.24 on July 31, 2023, further emphasizing enhanced liquidity management and asset utilization.
The positive trend persisted into subsequent years, with the ratio ascending to 6.69 on July 31, 2024, and culminating at 8.13 by July 31, 2025. This progressive rise signifies that Copart Inc. has increasingly strengthened its liquidity buffer over the four-year span, suggesting an improved capacity to meet short-term obligations without relying on inventory sales or additional external financing. The consistent growth in the quick ratio underscores a trend of bolstered liquidity position, which could be indicative of prudent cash and liquid asset management, an accumulation of quick assets, or a strategic reduction in current liabilities relative to liquid assets.
Overall, the data points to a highly favorable liquidity profile for Copart Inc., characterized by a steadily expanding quick ratio. This pattern reflects strong short-term financial health, providing a cushion of liquid assets that surpass current liabilities by significant margins. The sustained increase over the period suggests effective liquidity management and potentially enhances the company's resilience in facing unexpected short-term financial demands.