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

Company name
Symbol
Current ratio
Brady Corporation
BRC
2.27
Amcor PLC
AMCR
1.17
Hillenbrand Inc
HI
1.25