Brady Corporation (BRC)
Quick ratio
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 174,349 | 250,118 | 151,532 | 114,069 | 147,335 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 231,944 | 185,486 | 184,420 | 183,233 | 170,579 |
| Total current liabilities | US$ in thousands | 330,332 | 264,682 | 258,036 | 255,174 | 257,584 |
| Quick ratio | 1.23 | 1.65 | 1.30 | 1.17 | 1.23 |
July 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($174,349K
+ $—K
+ $231,944K)
÷ $330,332K
= 1.23
The quick ratio of Brady Corporation over the period from July 31, 2021, to July 31, 2025, exhibits notable fluctuations indicative of the company's liquidity position relative to its short-term liabilities.
In July 2021, the quick ratio was 1.23, suggesting that the company held sufficient liquid assets to cover its current liabilities with a modest margin. By July 2022, the ratio decreased slightly to 1.17, reflecting a marginal decline in liquidity, which could be attributed to either an increase in current liabilities or a reduction in liquid assets.
The ratio then increased to 1.30 by July 2023, indicating an improvement in liquidity and an enhanced capacity to meet short-term obligations without reliance on inventory sales. This upward movement may signal better management of liquid assets or a reduction in short-term liabilities.
A more significant increase occurred by July 2024, with the ratio reaching 1.65. This suggests a substantial strengthening of liquidity, positioning Brady Corporation with a comfortable buffer to cover current liabilities through quick assets. This improvement could result from strategic asset management, reduction in liabilities, or increased liquid asset holdings.
However, by July 2025, the ratio declined slightly to 1.23, approaching levels comparable to the 2021 figures. The decrease indicates a potential slight erosion in liquidity, possibly due to increased liabilities or a reduction in liquid assets. Nonetheless, the ratio remains above 1, implying that the company's liquidity remains adequate.
Overall, the trend in Brady Corporation's quick ratio reflects a pattern of liquidity enhancement leading up to July 2024, followed by a modest contraction thereafter. The values consistently stay above 1 across the observed period, implying that the company generally maintains an acceptable liquidity position to meet its immediate obligations.