Brady Corporation (BRC)
Inventory turnover
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,039,650 | 1,057,020 | 1,065,470 | 583,252 | 552,734 |
| Inventory | US$ in thousands | 152,729 | 177,078 | 190,023 | 136,107 | 135,662 |
| Inventory turnover | 6.81 | 5.97 | 5.61 | 4.29 | 4.07 |
July 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,039,650K ÷ $152,729K
= 6.81
The inventory turnover ratio for Brady Corporation has been showing an improving trend over the past five years. From a level of 4.07 in July 2020, the ratio has steadily increased to 6.81 in July 2024.
A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently. It means that the company is able to generate sales from its inventory at a faster rate, which is generally a positive sign of effective inventory management.
The increasing trend in the inventory turnover ratio can be reflective of improving inventory management practices such as better demand forecasting, efficient supply chain management, and streamlined operations. This trend suggests that Brady Corporation is making effective use of its inventory and is efficiently converting it into sales.
Overall, the consistent improvement in the inventory turnover ratio for Brady Corporation signifies a positive trend in the company's operational efficiency and could potentially lead to better financial performance in the future.
Peer comparison
Jul 31, 2024