Brady Corporation (BRC)
Cash ratio
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 174,349 | 250,118 | 151,532 | 114,069 | 147,335 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 330,332 | 264,682 | 258,036 | 255,174 | 257,584 |
| Cash ratio | 0.53 | 0.94 | 0.59 | 0.45 | 0.57 |
July 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($174,349K
+ $—K)
÷ $330,332K
= 0.53
The cash ratio for Brady Corporation exhibits fluctuations over the specified period from July 31, 2021, to July 31, 2025. The ratio was 0.57 in 2021, indicating that, at that time, Brady held cash and cash equivalents covering approximately 57% of its current liabilities, reflecting a relatively moderate liquidity position. In 2022, the ratio decreased to 0.45, suggesting a slight weakening in liquidity, as the company's cash holdings covered less than half of its current obligations.
By 2023, the cash ratio increased to 0.59, signaling an improvement in liquidity and a better capacity to meet short-term liabilities with cash resources. The most notable change occurs in 2024, when the ratio significantly rises to 0.94, approaching a near-doubling, which indicates a substantial strengthening of Brady's cash holdings relative to its current liabilities, thereby providing a high level of liquidity security.
In the subsequent year, 2025, the cash ratio decreases to 0.53 but remains above the 2022 level, indicating some contraction in liquidity yet maintaining a position above the earlier low point. Over the five-year span, the trend demonstrates overall variability with periods of both strengthening and weakening liquidity positions, culminating in a peak in 2024 that suggests a strategic increase in cash reserves or a reduction in current liabilities during that year.