Brady Corporation (BRC)
Operating return on assets (Operating ROA)
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 236,638 | 243,561 | 239,741 | 242,433 | 243,241 | 239,071 | 238,702 | 233,557 | 225,213 | 216,084 | 205,972 | 200,063 | 193,012 | 180,898 | 174,734 | 169,274 | 167,127 | 159,544 | 135,488 | 139,320 |
| Total assets | US$ in thousands | 1,734,250 | 1,698,120 | 1,588,700 | 1,627,880 | 1,515,570 | 1,424,100 | 1,407,600 | 1,383,410 | 1,389,260 | 1,376,770 | 1,372,270 | 1,350,630 | 1,367,330 | 1,344,240 | 1,387,060 | 1,410,480 | 1,377,760 | 1,260,180 | 1,207,880 | 1,175,710 |
| Operating ROA | 13.64% | 14.34% | 15.09% | 14.89% | 16.05% | 16.79% | 16.96% | 16.88% | 16.21% | 15.69% | 15.01% | 14.81% | 14.12% | 13.46% | 12.60% | 12.00% | 12.13% | 12.66% | 11.22% | 11.85% |
July 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $236,638K ÷ $1,734,250K
= 13.64%
The operating return on assets (ROA) of Brady Corporation demonstrates a generally upward trending trajectory from October 2020 through late 2023, with a peak reached in October 2023 at approximately 16.88%. During this period, the operating ROA increased steadily, reflecting improved operational efficiency and profitability relative to the company's total assets. Notably, there was a consistent quarter-over-quarter growth from October 2020 through January 2024, indicating effective management and potential positive factors such as favorable sales growth, cost control, or enhanced operational margins.
From October 2020 to October 2023, the operating ROA increased by approximately 5 percentage points, suggesting a notable enhancement in asset utilization and operating performance. The peak in October 2023 signifies optimal operational profitability during this timeframe. However, subsequent quarters reveal sensitivity to external or internal factors, as indicated by the decline to 16.79% in April 2024 and further to 14.89% in October 2024.
The decline observed post-October 2023 may suggest potential challenges or shifts in operational efficiency, such as increased costs, market competition, or changes in sales volume impacting profitability. Despite this decline, the figures through mid-2025 still reflect a higher average operating ROA compared to pre-2021 levels.
Overall, Brady Corporation's operating ROA is characterized by a period of growth up to late 2023, followed by a modest contraction, emphasizing the importance of ongoing operational adjustments to sustain profitability levels relative to asset utilization.