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