Brady Corporation (BRC)
Quick ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 250,118 | 151,532 | 114,069 | 147,335 | 217,643 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 185,486 | 184,420 | 183,233 | 170,579 | 146,181 |
| Total current liabilities | US$ in thousands | 264,682 | 258,036 | 255,174 | 257,584 | 185,888 |
| Quick ratio | 1.65 | 1.30 | 1.17 | 1.23 | 1.96 |
July 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($250,118K
+ $—K
+ $185,486K)
÷ $264,682K
= 1.65
The quick ratio of Brady Corporation has fluctuated over the past five years, ranging from 1.17 to 1.96. A quick ratio above 1 indicates that the company has sufficient current assets (such as cash, marketable securities, and accounts receivable) to cover its near-term liabilities.
In 2020, the quick ratio was at its highest at 1.96, indicating a strong liquidity position. However, this ratio decreased in the following years, reaching its lowest point in 2022 at 1.17. This could suggest potential liquidity challenges or increased reliance on inventory to cover short-term obligations during that year.
The quick ratio improved in 2023 and 2024, reaching 1.30 and 1.65 respectively. This upward trend indicates that Brady Corporation has enhanced its ability to meet its short-term obligations without relying heavily on inventory.
Overall, monitoring the quick ratio over time can provide insights into Brady Corporation's liquidity management and financial health, indicating whether the company has sufficient liquid assets to meet its short-term liabilities.
Peer comparison
Jul 31, 2024