Brady Corporation (BRC)
Inventory turnover
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 752,783 | 653,509 | 674,588 | 670,510 | 583,252 |
| Inventory | US$ in thousands | 9,147 | 152,729 | 177,078 | 190,023 | 136,107 |
| Inventory turnover | 82.30 | 4.28 | 3.81 | 3.53 | 4.29 |
July 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $752,783K ÷ $9,147K
= 82.30
The inventory turnover ratio of Brady Corporation has exhibited notable fluctuations over the anticipated period from July 31, 2021, to July 31, 2025. Initially, the ratio decreased from 4.29 in 2021 to 3.53 in 2022, indicating a slowdown in inventory sales relative to inventory levels during that period. The ratio then experienced a modest rebound to 3.81 by 2023, suggesting a partial improvement in inventory management or sales efficiency.
By July 31, 2024, the inventory turnover ratio further increased to 4.28, approaching its 2021 level, which may reflect enhanced inventory management practices or improved demand conditions. However, a dramatic and irregular spike is observed in the estimated ratio for July 2025, recorded at 82.30. This extraordinary figure appears anomalous compared to prior data points and likely indicates a data inconsistency, data entry error, or an extraordinary event impacting inventory or sales reporting.
Overall, the trend from 2021 through 2024 suggests a recovery in inventory turnover, approaching levels seen at the beginning of the period. The abrupt and implausibly high ratio in 2025 warrants further investigation to confirm its accuracy and interpret its underlying causes.