Brady Corporation (BRC)
Operating return on assets (Operating ROA)
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 236,638 | 243,414 | 225,213 | 193,012 | 167,127 |
| Total assets | US$ in thousands | 20,251 | 1,515,570 | 1,389,260 | 1,367,330 | 1,377,760 |
| Operating ROA | 1,168.53% | 16.06% | 16.21% | 14.12% | 12.13% |
July 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $236,638K ÷ $20,251K
= 1,168.53%
The provided data indicates a progressive increase in Brady Corporation’s operating return on assets (operating ROA) over the specified fiscal periods, with a notable spike observed in the most recent year. Specifically, as of July 31, 2021, the operating ROA stood at 12.13%. This metric improved modestly to 14.12% by July 31, 2022, reflecting a positive trend in the company's operational efficiency in generating earnings from its assets. The upward trajectory continued into July 31, 2023, reaching 16.21%, which signifies further enhancement in operational performance.
However, the data reveals a slight decline in the following year, with the operating ROA decreasing to 16.06% as of July 31, 2024. Despite this dip, the value remains substantially higher compared to previous years, suggesting sustained operational profitability.
A dramatic and likely anomalous increase is observed in the July 31, 2025 figure, which reports an operating ROA of 1,168.53%. Such an extreme value considerably exceeds historical figures and indicates potential data inaccuracies, extraordinary accounting entries, or one-time operational gains that are not representative of typical performance.
In summary, Brady Corporation experienced steady improvement in operating ROA from 2021 through 2023, demonstrating enhanced ability to generate operating income from its assets. The slight reduction in 2024 suggests a brief slowdown, yet profitability remained substantially elevated compared to earlier periods. The exceptionally high figure in 2025 warrants further investigation to determine its validity and underlying causes, as it significantly diverges from prior trends and likely does not reflect ongoing operational performance.