Brady Corporation (BRC)
Cash conversion cycle
| 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 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 53.62 | 53.40 | 57.67 | 57.75 | 61.15 | 63.79 | 67.22 | 67.43 | 65.10 | 67.01 | 73.01 | 78.46 | 85.18 | 80.36 | 81.91 | 79.93 | 89.58 | 80.03 | 76.57 | 75.16 |
| Days of sales outstanding (DSO) | days | 50.53 | 53.07 | 50.60 | 48.96 | 50.53 | 51.51 | 52.13 | 50.54 | 51.42 | 53.14 | 50.74 | 56.12 | 54.39 | 54.69 | 53.01 | 53.39 | 49.34 | 47.09 | 48.15 | 51.40 |
| Number of days of payables | days | 29.73 | 27.86 | 28.01 | 27.51 | 27.57 | 26.08 | 26.13 | 27.43 | 27.79 | 30.10 | 35.15 | 40.96 | 51.41 | 47.25 | 44.97 | 41.82 | 41.30 | 37.78 | 32.48 | 37.32 |
| Cash conversion cycle | days | 74.42 | 78.62 | 80.26 | 79.20 | 84.10 | 89.21 | 93.22 | 90.55 | 88.72 | 90.05 | 88.60 | 93.63 | 88.16 | 87.80 | 89.95 | 91.49 | 97.63 | 89.34 | 92.24 | 89.24 |
July 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 53.62 + 50.53 – 29.73
= 74.42
The cash conversion cycle of Brady Corporation has shown fluctuations over the past few quarters. The company's ability to convert its resources efficiently into cash has varied, with the cycle ranging from around 74 to 97 days in recent periods.
A lower cash conversion cycle indicates that Brady Corporation is able to collect cash more quickly from its sales and manage its inventory and payables effectively. On the other hand, a higher cycle suggests inefficiencies in managing its working capital, which can tie up cash and potentially impact the company's liquidity and financial performance.
It is important for Brady Corporation to continuously monitor and optimize its cash conversion cycle to ensure efficient operations and financial health. Analyzing the underlying factors contributing to the fluctuations in the cycle can help the company make informed decisions to improve its working capital management and overall financial performance.
Peer comparison
Jul 31, 2024