Brady Corporation (BRC)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,039,652 | 1,047,594 | 1,043,930 | 1,055,049 | 1,057,024 | 1,046,078 | 1,059,691 | 1,059,309 | 1,065,468 | 964,962 | 837,144 | 708,493 | 583,252 | 558,009 | 547,769 | 548,991 | 552,734 | 568,194 | 575,774 | 580,852 |
| Payables | US$ in thousands | 84,691 | 79,965 | 80,114 | 79,512 | 79,855 | 74,745 | 75,876 | 79,604 | 81,116 | 79,567 | 80,611 | 79,497 | 82,152 | 72,234 | 67,483 | 62,907 | 62,547 | 58,819 | 51,233 | 59,385 |
| Payables turnover | 12.28 | 13.10 | 13.03 | 13.27 | 13.24 | 14.00 | 13.97 | 13.31 | 13.14 | 12.13 | 10.38 | 8.91 | 7.10 | 7.73 | 8.12 | 8.73 | 8.84 | 9.66 | 11.24 | 9.78 |
July 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,039,652K ÷ $84,691K
= 12.28
The payables turnover of Brady Corporation has fluctuated over the past few years, ranging from a low of 7.10 to a high of 14.00. The payables turnover ratio measures how quickly a company pays its suppliers, with a higher ratio indicating that the company is paying its suppliers more frequently.
In recent periods, the payables turnover has generally been increasing, indicating that Brady Corporation has been paying its suppliers more frequently. This could be due to improved cash flow management or changes in payment terms with suppliers.
A high payables turnover ratio can signify efficient management of payables and working capital, as it shows that the company is effectively managing its accounts payable. However, an extremely high ratio could also suggest that the company is aggressively managing its payables, which may strain relationships with suppliers.
On the other hand, a low payables turnover ratio may indicate that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships or signal issues with cash flow management.
Overall, Brady Corporation's increasing payables turnover ratio suggests that the company may be improving its efficiency in managing its accounts payable, which could have positive implications for its working capital management and overall financial health.
Peer comparison
Jul 31, 2024