Brady Corporation (BRC)
Total asset 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 |
| Total assets | US$ in thousands | 1,515,570 | 1,389,260 | 1,367,330 | 1,377,760 | 1,142,470 |
| Total asset turnover | 0.89 | 0.96 | 0.95 | 0.83 | 0.95 |
July 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,341,390K ÷ $1,515,570K
= 0.89
The total asset turnover ratio for Brady Corporation has fluctuated over the past five years. The ratio indicates how efficiently Brady Corporation is utilizing its total assets to generate revenue. A lower total asset turnover ratio suggests that the company is generating less revenue per dollar of assets, which may indicate inefficiency in asset utilization.
In the most recent fiscal year ending July 31, 2024, the total asset turnover ratio stood at 0.89, indicating that for every dollar of total assets, Brady Corporation generated $0.89 in revenue. This represents a decrease from the previous year, where the ratio was 0.96. The declining trend in the ratio over the past two years may raise concerns about the company's ability to efficiently utilize its assets to generate revenue.
Comparing the current ratio to the ratios from earlier years, Brady Corporation's total asset turnover ratio in 2024 is below the ratios reported in 2022 and 2020, but slightly higher than the ratio in 2021. This suggests that the company's asset utilization efficiency has varied over the years and may warrant further investigation into the factors influencing this trend.
Overall, Brady Corporation's total asset turnover ratio indicates a moderate level of efficiency in converting total assets into revenue, but the downward trajectory in recent years highlights the importance of closely monitoring asset management strategies to ensure optimal performance.
Peer comparison
Jul 31, 2024