Copart Inc (CPRT)

Quick 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
Cash	US$ in thousands	1,256,950	2,581,570	957,395	2,114,180	1,660,950	1,539,390	1,384,240	1,454,820	971,651	1,298,370	1,048,260	911,890	616,403	605,732	477,718	306,387	93,511	181,102	186,319	102,826
Short-term investments	US$ in thousands	1,411,120	48,982	1,406,590	—	—	—	—	224,889	374,866	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	863,387	756,053	708,612	694,262	765,628	634,225	628,455	587,495	646,055	563,174	500,640	445,461	468,903	408,812	376,947	377,822	514,378	442,679	386,791	395,466
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
Quick ratio		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	2.03	1.68

January 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,256,950K + $1,411,120K + $863,387K) ÷ $526,023K
= 6.71

The quick ratio of Copart, Inc. has shown a generally increasing trend over the last eight quarters, indicating improving short-term liquidity. The quick ratio increased from 4.86 in Q4 2022 to 7.04 in Q2 2024. This suggests that the company's ability to meet its short-term obligations with its most liquid assets has strengthened significantly.

Copart's quick ratio has consistently been above 1, reflecting a strong ability to cover its current liabilities with its quick assets in all the quarters analyzed. The company has maintained a comfortable margin of safety in meeting its short-term financial obligations. Investors and creditors may view this positively as it implies lower liquidity risk and a healthier financial position.

The increasing trend in the quick ratio indicates effective management of liquidity and efficient use of current assets to meet short-term liabilities. However, it's essential to monitor this ratio over time to ensure continued financial stability and to assess the company's ability to weather potential financial challenges in the future.