Brady Corporation (BRC)
Payables 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 |
| Payables | US$ in thousands | 84,691 | 79,855 | 81,116 | 82,152 | 62,547 |
| Payables turnover | 12.28 | 13.24 | 13.14 | 7.10 | 8.84 |
July 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,039,650K ÷ $84,691K
= 12.28
Brady Corporation's payables turnover ratio has fluctuated over the past five years. The ratio measures how efficiently the company is managing its accounts payable by determining how many times during a year the company pays off its suppliers.
In 2024, the payables turnover ratio was 12.28, indicating that Brady Corporation paid off its suppliers approximately 12.28 times during the year. This was a decrease from the previous year's ratio of 13.24, suggesting a slight decrease in the efficiency of managing payables.
Comparing 2024 to 2020, there has been an overall improvement in managing payables, as the ratio has increased significantly from 8.84 to 12.28. This suggests that Brady Corporation has been able to negotiate better payment terms with suppliers or improve its cash flow management.
However, it is important to delve deeper into the reasons behind these fluctuations to assess the company's financial health accurately and its ability to meet its obligations to suppliers in a timely manner.
Peer comparison
Jul 31, 2024