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

Company name
Symbol
Cash ratio
Brady Corporation
BRC
0.94
Amcor PLC
AMCR
0.14
Hillenbrand Inc
HI
0.19