Brady Corporation (BRC)
Profitability ratios
Return on sales
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 50.27% | 51.28% | 49.35% | 48.50% | 49.05% |
| Operating profit margin | 15.63% | 18.15% | 16.91% | 14.82% | 14.60% |
| Pretax margin | 15.66% | 18.48% | 16.95% | 14.74% | 14.94% |
| Net profit margin | 12.50% | 14.70% | 13.13% | 11.52% | 11.33% |
The profitability ratios of Brady Corporation over the period from July 31, 2021, to July 31, 2025, exhibit various performance trends.
The gross profit margin shows a marginal decline from 49.05% in 2021 to 48.50% in 2022, followed by a slight increase to 49.35% in 2023. Subsequently, there is a notable upward movement reaching 51.28% in 2024, before a small decline to 50.27% in 2025. This indicates a generally stable gross margin with a positive trend in the most recent year, suggesting improved efficiency in cost management relative to sales.
The operating profit margin demonstrates a more consistent upward trajectory. It rises from 14.60% in 2021 to 14.82% in 2022, then steps up significantly to 16.91% in 2023. The upward momentum continues into 2024, reaching 18.15%, but declines somewhat to 15.63% in 2025. Despite this decrease, the overall trend from 2021 indicates effective control over operating expenses and improving operational efficiency during the period.
Similarly, the pretax margin follows an increasing trend, from 14.94% in 2021 to a peak of 16.95% in 2023, and further to 18.48% in 2024. A decline to 15.66% occurs in 2025, yet the period overall shows a robust improvement in profitability before the downturn.
The net profit margin reflects a steady increase from 11.33% in 2021 to 11.52% in 2022, followed by a more pronounced rise to 13.13% in 2023 and 14.70% in 2024. In 2025, the net margin decreases to 12.50%, but remains higher than initial levels, indicating sustained profitability enhancements over the period.
Overall, Brady Corporation's profitability ratios reveal a trend of progressive improvement in margins throughout most of the period, particularly in gross, operating, and pretax margins, suggesting enhanced operational efficiency and cost management. The slight decline in some margins in 2025 indicates potential challenges or increased expenses affecting net profitability, though the company maintains overall profitability above earlier levels.
Return on investment
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1,168.53% | 16.06% | 16.21% | 14.12% | 12.13% |
| Return on assets (ROA) | 934.55% | 13.01% | 12.59% | 10.97% | 9.41% |
| Return on total capital | 20.29% | 23.53% | 23.13% | 21.21% | 17.80% |
| Return on equity (ROE) | 15.87% | 18.49% | 17.65% | 16.46% | 13.46% |
The profitability ratios of Brady Corporation over the reported periods reflect a generally positive trend, with notable increases in most measures up to July 31, 2024. Specifically, the operating return on assets (Operating ROA) improved from 12.13% in 2021 to a peak of 16.21% in 2023, before a slight decline to 16.06% in 2024. However, a significant anomaly is observed in the most recent year, July 31, 2025, where the Operating ROA escalates dramatically to 1,168.53%, suggesting either a possible data error, extraordinary circumstances, or an unusual accounting event.
Similarly, the return on assets (ROA), which accounts for net income relative to total assets, shows consistent growth from 9.41% in 2021 to 12.59% in 2023, and further to 13.01% in 2024. The ratio then exhibits an extraordinary spike in 2025 to 934.55%, which again warrants scrutiny for potential anomalies or extraordinary gains.
The return on total capital indicates a steady increase from 17.80% in 2021 to 23.13% in 2023, with a marginal rise to 23.53% in 2024. In 2025, this ratio declines somewhat to 20.29%, reflecting a possible adjustment or shift in capital structure or profitability.
ROE trends align closely with the other ratios, rising from 13.46% in 2021 to 17.65% in 2023, and reaching 18.49% in 2024. The ratio then decreases to 15.87% in the latest year, suggesting some fluctuation in profitability attributable to equity shareholders.
Overall, the data indicates that Brady Corporation experienced consistent profitability improvements through 2024. The extreme ratios observed in 2025 are anomalous and suggest the need for further investigation to confirm the validity of these figures or to understand the extraordinary gains reflected therein.