Brady Corporation (BRC)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	97.40	96.04	94.65	95.80	85.28	85.10	91.46	91.27	95.81	100.29	105.94	106.40	103.44	96.77	95.45	91.44	85.18	80.36	81.91	79.93
Days of sales outstanding (DSO)	days	55.93	56.10	51.90	57.46	50.47	52.99	50.64	48.98	50.54	51.52	52.01	50.47	51.36	53.10	50.72	56.12	54.39	54.69	53.01	53.39
Number of days of payables	days	50.92	50.42	47.36	52.64	47.29	44.40	44.42	43.48	43.21	41.00	41.19	43.28	44.16	43.46	45.95	47.73	51.41	47.25	44.97	41.82
Cash conversion cycle	days	102.41	101.71	99.19	100.62	88.46	93.69	97.67	96.77	103.15	110.81	116.76	113.59	110.65	106.41	100.22	99.82	88.16	87.80	89.95	91.49

July 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 97.40 + 55.93 – 50.92
= 102.41

The data indicates that Brady Corporation’s cash conversion cycle (CCC) experienced fluctuations over the period from October 2020 through July 2025, reflecting operational and working capital dynamics.

Initially, the CCC was approximately 91.49 days in October 2020, decreasing slightly to around 87.80 days by April 2021. During this period, the company improved its liquidity management by shortening the time taken to convert investments in inventory and receivables into cash.

However, from October 2021 onward, there was a notable upward trend. The CCC increased steadily, reaching a peak of approximately 116.76 days in January 2023. This indicates a longer period to convert receivables and inventory into cash, potentially reflecting slower collection, increased inventory holding, or delays in receivables payments, which could impact liquidity and working capital efficiency.

Following this peak, the CCC demonstrated a downtrend, decreasing to around 88.46 days by July 2024. This improvement suggests enhanced operational efficiency, perhaps through better receivables collection, inventory management, or both. Nonetheless, the CCC increased again slightly after July 2024, reaching about 100.62 days in October 2024, before stabilizing around 99 to 102 days in early 2025.

Overall, Brady Corporation’s cash conversion cycle exhibited a cyclical pattern with periods of elongation and contraction. These fluctuations may reflect changes in operational strategies, customer payment behaviors, inventory policies, or external market conditions. The recent trend toward a shorter cycle suggests progress in managing working capital more effectively, although it remains above the earlier levels seen in 2020 and early 2021, indicating room for further efficiency improvements.