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

Company name
Symbol
Quick ratio
Brady Corporation
BRC
1.65
Amcor PLC
AMCR
0.57
Hillenbrand Inc
HI
0.70