Brady Corporation (BRC)
Working capital 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 current assets | US$ in thousands | 599,715 | 524,820 | 498,068 | 465,104 | 509,448 |
| Total current liabilities | US$ in thousands | 264,682 | 258,036 | 255,174 | 257,584 | 185,888 |
| Working capital turnover | 4.00 | 4.99 | 5.36 | 5.52 | 3.34 |
July 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,341,390K ÷ ($599,715K – $264,682K)
= 4.00
Brady Corporation's working capital turnover has shown a fluctuating trend over the last five years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue.
In 2020, the working capital turnover ratio was 3.34, which increased to 5.52 in 2021, indicating an improvement in the efficiency of working capital management. This was followed by a slight decrease to 5.36 in 2022, still maintaining a relatively high turnover ratio compared to the previous years.
However, in 2023, the working capital turnover ratio further improved to 4.99, suggesting that the company was able to generate more revenue relative to its working capital investment. In the most recent year, 2024, the working capital turnover ratio was 4.00, indicating a slight decline compared to the previous year but still showing an efficient use of working capital.
Overall, Brady Corporation has generally exhibited a strong performance in terms of working capital turnover, reflecting effective management of its working capital to support revenue generation. The fluctuating trend observed in the working capital turnover ratio may be influenced by various factors such as changes in sales volume, inventory management, and accounts receivable and payable strategies.
Peer comparison
Jul 31, 2024