Brady Corporation (BRC)
Quick ratio
| 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 | US$ in thousands | 250,118 | 160,458 | 143,860 | 175,352 | 151,532 | 135,047 | 108,210 | 114,471 | 114,069 | 103,068 | 147,407 | 157,553 | 147,335 | 321,801 | 277,588 | 256,333 | 217,643 | 238,880 | 289,803 | 295,093 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 185,486 | 195,099 | 185,569 | 179,970 | 184,420 | 184,907 | 186,852 | 180,183 | 183,233 | 186,843 | 172,471 | 182,791 | 170,579 | 163,381 | 154,052 | 156,735 | 146,181 | 145,133 | 151,511 | 162,561 |
| Total current liabilities | US$ in thousands | 264,682 | 253,149 | 237,302 | 251,694 | 258,036 | 236,436 | 229,849 | 243,613 | 255,174 | 243,770 | 227,496 | 266,493 | 257,584 | 221,115 | 201,544 | 204,961 | 185,888 | 227,959 | 216,690 | 255,947 |
| 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 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.
Brady Corporation's quick ratio has exhibited some fluctuations over the past few years, ranging from a low of 1.17 to a high of 2.19. The trend shows some variability in the company's liquidity position, with notable peaks and troughs.
In recent periods, the quick ratio has generally been above 1, indicating that Brady Corporation has had sufficient liquid assets to cover its short-term liabilities. The quick ratio saw a significant increase in the first half of 2021, reaching above 2, which may suggest improved liquidity and ability to meet short-term obligations.
However, it is important to note that the quick ratio dropped in the subsequent periods, indicating a potential decrease in the proportion of liquid assets relative to current liabilities. This fluctuation may warrant further investigation into the company's liquidity management and working capital practices.
Overall, while Brady Corporation's quick ratio has generally been favorable, analysts may want to monitor future changes to ensure the company maintains a healthy liquidity position to meet its short-term obligations effectively.
Peer comparison
Jul 31, 2024