Brady Corporation (BRC)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 6.81 6.83 6.33 6.32 5.97 5.72 5.43 5.41 5.61 5.45 5.00 4.65 4.29 4.54 4.46 4.57 4.07 4.56 4.77 4.86
Receivables turnover 7.22 6.88 7.21 7.45 7.22 7.09 7.00 7.22 7.10 6.87 7.19 6.50 6.71 6.67 6.89 6.84 7.40 7.75 7.58 7.10
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
Working capital turnover 4.00 5.00 4.97 4.73 4.99 4.67 4.77 5.01 5.36 5.44 4.55 4.98 5.52 2.73 2.90 3.15 3.34 3.71 3.15 3.42

Brady Corporation's activity ratios provide insights into how efficiently the company is managing its resources.

- Inventory turnover has been relatively stable, ranging from 4.29 to 6.83 over the past few years. This indicates that Brady is able to sell and replace its inventory within a reasonable timeframe, with the most recent ratio of 6.83 showing an improvement in inventory management efficiency.

- Receivables turnover has also been consistent, ranging from 6.50 to 7.75. A higher turnover ratio signifies that Brady is collecting its accounts receivable faster, which is a positive indicator of effective credit management and liquidity.

- Payables turnover has shown variability, ranging from 7.10 to 14.00, which might suggest changes in the company's payment policies or relationships with suppliers. However, the ratios remain relatively high, indicating that Brady is able to settle its accounts payable promptly.

- The working capital turnover ratio has fluctuated between 2.73 and 5.44, with an increasing trend in recent periods. A higher working capital turnover ratio suggests that Brady is effectively utilizing its working capital to generate sales revenue, indicating efficient management of its current assets and liabilities.

Overall, Brady Corporation's activity ratios reflect a generally efficient management of inventory, receivables, payables, and working capital, indicating a healthy balance in handling resources and generating sales.

Average number of days

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
Days of inventory on hand (DOH) days 53.62 53.40 57.67 57.75 61.15 63.79 67.22 67.43 65.10 67.01 73.01 78.46 85.18 80.36 81.91 79.93 89.58 80.03 76.57 75.16
Days of sales outstanding (DSO) days 50.53 53.07 50.60 48.96 50.53 51.51 52.13 50.54 51.42 53.14 50.74 56.12 54.39 54.69 53.01 53.39 49.34 47.09 48.15 51.40
Number of days of payables days 29.73 27.86 28.01 27.51 27.57 26.08 26.13 27.43 27.79 30.10 35.15 40.96 51.41 47.25 44.97 41.82 41.30 37.78 32.48 37.32

The Days of Inventory on Hand (DOH) for Brady Corporation have shown a gradual decrease from 89.58 days as of October 31, 2020, to 53.62 days as of July 31, 2024. This indicates that the company has been managing its inventory efficiently, with the most recent data showing that it takes approximately 53.62 days for the company to sell its inventory.

The Days of Sales Outstanding (DSO) have fluctuated over the periods analyzed, with a slight increase in recent periods. As of July 31, 2024, the DSO stands at 50.53 days, indicating that on average, customers take approximately 50.53 days to pay their invoices. The increase in DSO may suggest a potential issue with collecting receivables efficiently.

The Number of Days of Payables has also varied over the periods analyzed, indicating the number of days it takes for the company to pay its suppliers. The data suggests that Brady Corporation has been extending its payment period, with the number of days of payables increasing from 32.48 days as of October 31, 2019, to 29.73 days as of July 31, 2024. This extension can be seen as a positive for cash flow management, as the company is taking longer to pay its suppliers.

Overall, the activity ratios for Brady Corporation show that the company has been efficient in managing its inventory, but there may be areas for improvement in receivables collection to maintain healthy cash flows. It is also notable that the company has been extending its payment period to suppliers, which may provide some benefit in terms of working capital management.

Long-term

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
Fixed asset turnover 6.84 6.89 7.02 9.33 9.37 9.38 9.29 9.54 9.32 10.27 9.80 9.24 9.40 9.00 8.69 8.93 9.40 10.10 10.18 10.26
Total asset turnover 0.88 0.94 0.95 0.97 0.96 0.95 0.95 0.96 0.95 0.95 0.89 0.84 0.83 0.87 0.88 0.91 0.95 0.99 0.94 0.94

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. Brady Corporation's fixed asset turnover ratio has ranged from 6.84 to 10.27 over the past few years, indicating that the company has been effectively using its fixed assets to generate sales. The higher the ratio, the better, as it shows that the company is generating more revenue from each dollar invested in fixed assets.

On the other hand, the total asset turnover ratio reflects how efficiently a company is utilizing all its assets to generate sales. Brady Corporation's total asset turnover ratio has ranged from 0.83 to 0.99 over the same period, showing a stable performance in utilizing its total assets to generate revenue. A higher total asset turnover ratio indicates that the company is generating more sales from its total assets.

Overall, Brady Corporation has maintained a relatively stable performance in terms of both fixed asset turnover and total asset turnover ratios, suggesting that the company has been effectively utilizing its assets to drive sales over the years.