Brady Corporation (BRC)
Liquidity ratios
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.27 | 2.06 | 2.13 | 2.13 | 2.03 | 2.19 | 2.19 | 2.07 | 1.95 | 1.97 | 2.20 | 1.90 | 1.81 | 2.81 | 2.81 | 2.66 | 2.74 | 2.33 | 2.68 | 2.32 |
| Quick ratio | 1.65 | 1.40 | 1.39 | 1.41 | 1.30 | 1.35 | 1.28 | 1.21 | 1.17 | 1.19 | 1.41 | 1.28 | 1.23 | 2.19 | 2.14 | 2.02 | 1.96 | 1.68 | 2.04 | 1.79 |
| Cash ratio | 0.94 | 0.63 | 0.61 | 0.70 | 0.59 | 0.57 | 0.47 | 0.47 | 0.45 | 0.42 | 0.65 | 0.59 | 0.57 | 1.46 | 1.38 | 1.25 | 1.17 | 1.05 | 1.34 | 1.15 |
Brady Corporation's liquidity ratios have fluctuated over the past few years. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has generally been above 2, indicating a healthy liquidity position. However, there have been some fluctuations with the ratio ranging from 1.90 to 2.81 over the past two years.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has shown a similar trend with values ranging from 1.17 to 2.19. This suggests that Brady Corporation may have some level of dependency on inventory to meet its short-term obligations, but overall, the company maintains a strong liquidity position.
The cash ratio, which is the most conservative liquidity ratio focusing solely on cash and cash equivalents, has also displayed fluctuations ranging from 0.42 to 1.46. This indicates that the company may have varying levels of cash available to cover its short-term liabilities.
Overall, Brady Corporation has generally maintained strong liquidity ratios, with the current ratio consistently above 2 and the quick ratio also at healthy levels. The fluctuations in these ratios over time may be reflective of changes in the company's operating and financial activities.
Additional liquidity measure
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 74.42 | 78.62 | 80.26 | 79.20 | 84.10 | 89.21 | 93.22 | 90.55 | 88.72 | 90.05 | 88.60 | 93.63 | 88.16 | 87.80 | 89.95 | 91.49 | 97.63 | 89.34 | 92.24 | 89.24 |
The cash conversion cycle of Brady Corporation has shown some fluctuations over the past few periods. The company's cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash from sales.
From the data provided, we can observe that the cash conversion cycle ranged between 74.42 days to 97.63 days over the last 20 periods. The trend indicates that Brady Corporation's cash conversion cycle has varied over time, with some periods showing a shorter cycle and others a longer cycle.
A lower cash conversion cycle is generally viewed as favorable as it indicates that the company is able to efficiently manage its working capital and convert its resources into cash quickly. On the other hand, a longer cash conversion cycle may suggest inefficiencies in inventory management, collection of receivables, or payment of payables.
The company should focus on optimizing its inventory turnover, improving accounts receivable collection processes, and negotiating favorable payment terms with suppliers to potentially reduce the cash conversion cycle and enhance its overall liquidity and working capital management.