Brady Corporation (BRC)
Current ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 599,715 | 524,820 | 498,068 | 465,104 | 509,448 |
| Total current liabilities | US$ in thousands | 264,682 | 258,036 | 255,174 | 257,584 | 185,888 |
| Current ratio | 2.27 | 2.03 | 1.95 | 1.81 | 2.74 |
July 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $599,715K ÷ $264,682K
= 2.27
The current ratio of Brady Corporation has exhibited fluctuations over the past five years. The ratio has shown an improving trend from 1.81 in July 2021 to 2.27 in July 2024. This indicates the company's ability to meet its short-term obligations with its current assets has strengthened over the years.
However, it is important to note that the current ratio decreased in the immediate preceding year, from 2.74 in July 2020 to 2.03 in July 2023, before rising again in the most recent year. Although the ratio remains above 1, suggesting the company has more than enough current assets to cover its current liabilities, the downward trend between 2020 and 2023 may warrant further investigation into the company's liquidity management practices.
Overall, the current ratio of Brady Corporation has generally remained healthy, with a fluctuating but upward trajectory in recent years, indicating a positive liquidity position.
Peer comparison
Jul 31, 2024