Copart Inc (CPRT)

Quick ratio

		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	US$ in thousands	1,514,110	1,090,000	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
Short-term investments	US$ in thousands	1,908,050	2,000,330	1,411,120	48,982	1,406,590	—	—	—	—	224,889	374,866	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	785,877	846,052	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
Total current liabilities	US$ in thousands	628,567	563,419	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
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

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 shown a generally upward trend over the past five years, indicating an improvement in the company's short-term liquidity position. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has consistently been above 1.0, suggesting that Copart Inc has an ample supply of liquid assets to cover its current liabilities.

Specifically, the quick ratio has increased from 1.93 as of October 2019 to 6.99 as of April 2024, indicating a significant strengthening in the company's liquidity position. This steady improvement in the quick ratio reflects well on Copart's management of its current assets and liabilities, as well as its overall financial health.

Overall, the increasing trend in the quick ratio over the past five years suggests that Copart Inc is in a strong position to meet its short-term obligations and fund its day-to-day operations without relying heavily on external financing.