Brady Corporation (BRC)
Receivables turnover
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,341,390 | 1,332,090 | 1,300,790 | 1,144,700 | 1,081,300 |
| Receivables | US$ in thousands | 185,486 | 184,420 | 183,233 | 170,579 | 146,181 |
| Receivables turnover | 7.23 | 7.22 | 7.10 | 6.71 | 7.40 |
July 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,341,390K ÷ $185,486K
= 7.23
The receivables turnover ratio for Brady Corporation has shown a relatively stable trend over the past five years. The ratio indicates how efficiently the company collects its accounts receivable from customers during a given period.
Brady Corporation's receivables turnover ranged from 6.71 to 7.40 times over the period from July 2020 to July 2024. Generally, a higher turnover ratio implies a more efficient collection process, as the company is able to convert its accounts receivable into cash more quickly.
The slight fluctuations in the receivables turnover ratio suggest that Brady Corporation has been consistent in managing its receivables effectively. This stability could indicate that the company has established reliable credit policies, timely collection procedures, or a strong customer base that pays promptly.
Overall, the consistent and relatively high receivables turnover ratio for Brady Corporation reflects a positive aspect of its operational efficiency in managing its accounts receivable, which is essential for maintaining healthy cash flows and financial stability.
Peer comparison
Jul 31, 2024