Brady Corporation (BRC)
Operating return on assets (Operating ROA)
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 243,414 | 225,213 | 193,012 | 167,127 | 138,023 |
| Total assets | US$ in thousands | 1,515,570 | 1,389,260 | 1,367,330 | 1,377,760 | 1,142,470 |
| Operating ROA | 16.06% | 16.21% | 14.12% | 12.13% | 12.08% |
July 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $243,414K ÷ $1,515,570K
= 16.06%
Brady Corporation's operating return on assets (ROA) has shown a positive trend over the past five years. The company's operating ROA has increased from 12.08% in July 2020 to 16.06% in July 2024, indicating improved efficiency in generating operating profits relative to its assets.
The consistently increasing trend in operating ROA demonstrates the company's ability to effectively use its assets to generate operating income. This indicates that Brady Corporation has been successful in managing its operating expenses and maximizing the profitability of its assets over the years.
The overall upward trajectory of Brady Corporation's operating ROA suggests strong operational performance and efficiency in utilizing its assets to generate revenue. It reflects positively on the company's management and strategic decisions in optimizing asset utilization and driving profitability.
Peer comparison
Jul 31, 2024