Brady Corporation (BRC)
Return on total capital
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 250,967 | 229,235 | 193,256 | 165,706 | 142,856 |
| Long-term debt | US$ in thousands | 90,935 | 49,716 | 95,000 | 38,000 | 0 |
| Total stockholders’ equity | US$ in thousands | 1,066,660 | 990,919 | 911,298 | 963,028 | 752,112 |
| Return on total capital | 21.68% | 22.03% | 19.20% | 16.55% | 18.99% |
July 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $250,967K ÷ ($90,935K + $1,066,660K)
= 21.68%
The Return on Total Capital for Brady Corporation has shown a fluctuating trend over the past five years, ranging from 16.55% in July 2021 to 22.03% in July 2023. In the most recent fiscal year ending July 31, 2024, the Return on Total Capital decreased slightly to 21.68%.
This indicates that Brady Corporation has been effectively utilizing its total capital to generate returns for its investors over the years. However, the slight decrease in the most recent year may warrant further investigation to understand the underlying factors affecting the company's profitability and capital efficiency.
Overall, the Return on Total Capital metric reflects the company's ability to generate profits from the total capital invested in the business, providing insights into its operational efficiency and financial performance.
Peer comparison
Jul 31, 2024