Brady Corporation (BRC)
Cash ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 250,118 | 151,532 | 114,069 | 147,335 | 217,643 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 264,682 | 258,036 | 255,174 | 257,584 | 185,888 |
| Cash ratio | 0.94 | 0.59 | 0.45 | 0.57 | 1.17 |
July 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($250,118K
+ $—K)
÷ $264,682K
= 0.94
The cash ratio of Brady Corporation has shown fluctuations over the past five years. As of July 31, 2024, the cash ratio stands at 0.94, indicating that the company has $0.94 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement from the previous year when the cash ratio was 0.59.
In general, a cash ratio above 1 is desirable as it suggests that a company can cover its short-term liabilities solely with its cash and cash equivalents. Brady Corporation's cash ratio has been below 1 in recent years, which may indicate a potential liquidity risk. However, it is worth noting that the current ratio is only one aspect of the company's overall financial health, and other liquidity measures should be considered in conjunction with the cash ratio for a comprehensive analysis.
Peer comparison
Jul 31, 2024