Brady Corporation (BRC)
Working capital turnover
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,513,605 | 1,459,732 | 1,420,526 | 1,386,475 | 1,341,393 | 1,343,920 | 1,337,652 | 1,341,277 | 1,331,863 | 1,309,915 | 1,311,350 | 1,303,156 | 1,302,062 | 1,284,211 | 1,241,163 | 1,188,946 | 1,144,698 | 1,090,312 | 1,060,752 | 1,071,579 |
| Total current assets | US$ in thousands | 621,835 | 581,902 | 536,315 | 556,069 | 599,715 | 521,272 | 506,520 | 535,065 | 524,820 | 516,783 | 504,215 | 503,251 | 498,068 | 479,617 | 500,015 | 505,091 | 465,104 | 621,061 | 567,336 | 544,777 |
| Total current liabilities | US$ in thousands | 330,332 | 311,786 | 282,350 | 301,470 | 264,682 | 253,149 | 237,302 | 251,694 | 258,036 | 236,436 | 229,849 | 243,613 | 255,174 | 243,770 | 227,496 | 266,493 | 257,584 | 221,115 | 201,544 | 204,961 |
| Working capital turnover | 5.19 | 5.40 | 5.59 | 5.45 | 4.00 | 5.01 | 4.97 | 4.73 | 4.99 | 4.67 | 4.78 | 5.02 | 5.36 | 5.45 | 4.55 | 4.98 | 5.52 | 2.73 | 2.90 | 3.15 |
July 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,513,605K ÷ ($621,835K – $330,332K)
= 5.19
The analysis of Brady Corporation's working capital turnover over the provided period reveals an overall trend characterized by fluctuations with a general tendency toward stability in recent periods. Initially, the ratio was at 3.15 as of October 31, 2020, which declined to a low of approximately 2.73 by April 30, 2021. This decrease indicates a reduction in sales relative to working capital, suggesting a period where the company was using its working capital less efficiently.
Subsequently, there was a notable increase beginning with the quarter ending July 31, 2021, when the ratio surged to 5.52. This upward movement was followed by a period of relatively high ratios hovering around the mid-4s, with values like 4.98 on October 31, 2021, and 4.55 on January 31, 2022, indicating improved efficiency in utilizing working capital to generate sales.
From mid-2022 onward, the working capital turnover remained relatively stable with ratios generally between 4.67 and 5.45, signifying consistent efficiency levels in managing working capital relative to sales activity. The ratios experienced minor fluctuations, with no significant dips below 4.0 during this period.
In the more recent periods extending into 2024 and 2025, the ratios continued to fluctuate within a range of approximately 4.00 to 5.59. Notably, a peak of 5.59 was observed on January 31, 2025, which could suggest an improvement in operational efficiency or changes in working capital management practices. Conversely, the ratio dipped to 4.00 on July 31, 2024, indicating some variability.
Overall, the data indicates that Brady Corporation has sustained a relatively stable level of working capital efficiency over the analyzed period, with occasional fluctuations likely reflecting seasonal effects, operational adjustments, or strategic changes in managing working capital. The recent upward trend towards 5.59 suggests a possible improvement in the company's effectiveness in leveraging working capital to generate sales.