Brady Corporation (BRC)
Return on assets (ROA)
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 189,256 | 197,215 | 174,857 | 149,979 | 129,659 |
| Total assets | US$ in thousands | 20,251 | 1,515,570 | 1,389,260 | 1,367,330 | 1,377,760 |
| ROA | 934.55% | 13.01% | 12.59% | 10.97% | 9.41% |
July 31, 2025 calculation
ROA = Net income ÷ Total assets
= $189,256K ÷ $20,251K
= 934.55%
The analysis of Brady Corporation's return on assets (ROA) over the specified period reveals a consistent upward trajectory from July 31, 2021, through July 31, 2024. Specifically, the ROA increased from 9.41% in 2021 to 10.97% in 2022, indicating a moderate improvement in the company's efficiency in generating profit from its total assets. This positive trend continued into 2023, with ROA ascending to 12.59%, further signifying enhanced profitability and effective utilization of assets. In 2024, the ROA rose marginally to 13.01%, reflecting sustained operational efficiency and profitability at a relatively steady rate.
However, a significant anomaly occurs in 2025, as the ROA dramatically spikes to 934.55%. Such a disproportionately high figure strongly suggests the presence of an extraordinary event, a possible accounting anomaly, or a reporting error, as it defies typical operational patterns and industry standards. This outlier indicates the need for a detailed review of the financial statements and context surrounding that fiscal year to accurately interpret the underlying factors responsible for such an unprecedented increase.
Overall, the trend from 2021 to 2024 highlights consistent improvement in asset efficiency, whereas the 2025 figure warrants further scrutiny to understand the circumstances leading to this anomalous data point.