Brady Corporation (BRC)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 189,256 | 194,836 | 193,463 | 196,757 | 197,215 | 191,137 | 188,299 | 182,657 | 174,857 | 166,543 | 158,545 | 154,374 | 149,979 | 136,942 | 134,179 | 131,224 | 129,659 | 129,317 | 105,659 | 108,352 |
| Total stockholders’ equity | US$ in thousands | 1,192,210 | 1,167,550 | 1,120,470 | 1,108,930 | 1,066,660 | 1,022,100 | 1,038,730 | 994,992 | 990,919 | 995,096 | 967,404 | 911,725 | 911,298 | 914,238 | 966,568 | 963,893 | 963,028 | 951,626 | 919,335 | 880,401 |
| ROE | 15.87% | 16.69% | 17.27% | 17.74% | 18.49% | 18.70% | 18.13% | 18.36% | 17.65% | 16.74% | 16.39% | 16.93% | 16.46% | 14.98% | 13.88% | 13.61% | 13.46% | 13.59% | 11.49% | 12.31% |
July 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $189,256K ÷ $1,192,210K
= 15.87%
The analysis of Brady Corporation's return on equity (ROE) over the specified periods reveals a generally upward trend with some fluctuations. Starting from a ROE of 12.31% as of October 31, 2020, the metric showed a gradual increase through subsequent quarters, reaching a peak of approximately 18.70% by April 2024. This indicates an improving profitability relative to shareholders’ equity over this period.
The incremental rise from 12.31% in late 2020 to around 18.70% in early 2024 suggests that the company has been increasingly efficient in generating profit from its equity base. The steady upward trajectory reflects enhancements in operational performance, cost management, or revenue growth, which contribute positively to shareholder value.
However, after reaching this high point, the ROE exhibits signs of plateauing and slight declines. For example, from its peak of 18.70% in April 2024, it experienced a modest decline to 17.74% by October 2024, and further to 17.27% in early 2025. This indicates some possible pressures or stabilization in profitability levels, potentially due to increasing competition, market saturation, or changes in operational efficiency.
In summary, Brady Corporation’s ROE demonstrates a robust improvement over the period, highlighting effective management and profitability gains. Nonetheless, the recent deceleration and minor decline suggest maintaining vigilance regarding market and operational conditions to sustain these levels. This trend underscores the importance of strategic initiatives aimed at continuous profitability growth to prevent stagnation.