Brady Corporation (BRC)
Profitability ratios
Return on sales
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 51.28% | 49.34% | 48.55% | 49.05% | 48.88% |
| Operating profit margin | 18.15% | 16.91% | 14.84% | 14.60% | 12.76% |
| Pretax margin | 18.48% | 16.94% | 14.76% | 14.44% | 13.01% |
| Net profit margin | 14.70% | 13.13% | 11.53% | 11.33% | 10.39% |
Based on the data provided, Brady Corporation has shown an improving trend in profitability ratios over the last five years.
1. Gross Profit Margin: The company's gross profit margin has generally increased over the period, indicating its ability to efficiently manage production costs and generate profits from its products. This trend suggests that Brady Corporation has been able to maintain a healthy level of profitability on its sales.
2. Operating Profit Margin: The operating profit margin has also shown a positive trend, increasing steadily over the years. This suggests that the company has been effective in controlling its operating expenses and improving operational efficiency.
3. Pretax Margin: The pretax margin has consistently improved, indicating that Brady Corporation has been able to generate higher profits relative to its total revenue before accounting for taxes. This may be a result of effective cost management and strategic decision-making.
4. Net Profit Margin: The net profit margin, a key indicator of overall profitability, has also displayed an upward trajectory. This suggests that the company has been successful in managing its tax obligations, interest payments, and other non-operating costs, resulting in higher bottom-line profits.
Overall, the trend of increasing profitability ratios for Brady Corporation reflects positively on its financial performance and efficiency in generating profits from its operations.
Return on investment
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.06% | 16.21% | 14.12% | 12.13% | 12.08% |
| Return on assets (ROA) | 13.01% | 12.59% | 10.97% | 9.41% | 9.84% |
| Return on total capital | 21.68% | 22.03% | 19.20% | 16.55% | 18.99% |
| Return on equity (ROE) | 18.49% | 17.65% | 16.46% | 13.46% | 14.94% |
Brady Corporation has shown a consistent improvement in its profitability ratios over the past five years.
- Operating return on assets (Operating ROA) has slightly fluctuated over the years but generally remained at a healthy level, indicating the company's ability to generate profits from its assets efficiently.
- Return on assets (ROA) has also shown an upward trend, indicating that Brady Corporation has been effective in generating profits from its total assets.
- Return on total capital has consistently increased over the years, suggesting that the company has been successful in utilizing both equity and debt to generate returns for its investors.
- Return on equity (ROE) has also shown a steady increase, demonstrating that Brady Corporation has been efficient in generating profits for its shareholders from their equity investment.
Overall, Brady Corporation's profitability ratios reflect a positive trend, indicating effective management of assets, capital, and equity to generate returns for its stakeholders.