Brady Corporation (BRC)
Inventory turnover
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 752,783 | 722,086 | 701,085 | 680,794 | 653,682 | 657,384 | 658,279 | 667,547 | 674,588 | 665,344 | 672,444 | 671,328 | 670,510 | 668,186 | 640,317 | 607,940 | 583,252 | 558,009 | 547,769 | 548,991 |
| Inventory | US$ in thousands | 200,881 | 189,991 | 181,810 | 178,688 | 152,729 | 153,272 | 164,944 | 166,916 | 177,078 | 182,809 | 195,167 | 195,695 | 190,023 | 177,156 | 167,456 | 152,295 | 136,107 | 122,847 | 122,922 | 120,220 |
| Inventory turnover | 3.75 | 3.80 | 3.86 | 3.81 | 4.28 | 4.29 | 3.99 | 4.00 | 3.81 | 3.64 | 3.45 | 3.43 | 3.53 | 3.77 | 3.82 | 3.99 | 4.29 | 4.54 | 4.46 | 4.57 |
July 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $752,783K ÷ $200,881K
= 3.75
The inventory turnover ratio for Brady Corporation demonstrates a pattern of fluctuation over the analyzed period from October 31, 2020, through July 31, 2025. Initially, the ratio started at 4.57 in October 2020, indicating efficient management of inventory through relatively frequent sales relative to inventory levels. Over subsequent quarters, the ratio experienced a gradual decline, reaching a low of approximately 3.43 in October 2022, which suggests a decrease in inventory turnover efficiency during that period.
From late 2022 onwards, the ratio showed signs of stabilization and modest improvement, climbing back to around 4.00 by October 2023. This indicates a slight recovery in inventory management effectiveness, aligning with periods of strategic adjustment or operational improvements. The ratio continued to trend upward into April 2024, reaching approximately 4.29, which is comparable to the early periods prior to the decline, reflecting an improvement in inventory turnover.
Subsequent periods exhibit minor fluctuations, with the ratio remaining in a narrow range between approximately 3.75 and 4.29. Notably, the ratio on July 31, 2024, remains near the higher end at 4.28, while the latest data point in October 2024 shows a slight decrease to 3.81, and the following periods hover around an average of 3.86. Overall, the data reveals that Brady Corporation’s inventory turnover ratio experienced a period of decline followed by partial recovery, indicative of efforts to optimize inventory management and sales efficiency over time.
The stability in the ratio within this range suggests relatively consistent inventory control, though the variation indicates periods of operational challenges or market dynamics influencing its efficiency. The current levels imply that Brady Corporation maintains a moderate to high turnover rate, reflecting an active sales cycle and effective inventory management in recent periods.