Brady Corporation (BRC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 241,844 | 249,246 | 247,704 | 250,955 | 250,967 | 246,388 | 245,035 | 238,174 | 229,235 | 219,267 | 207,062 | 199,607 | 193,256 | 180,516 | 176,841 | 173,995 | 171,460 | 164,743 | 139,618 | 143,174 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 20.29% | 21.35% | 22.11% | 22.63% | 23.53% | 24.11% | 23.59% | 23.94% | 23.13% | 22.03% | 21.40% | 21.89% | 21.21% | 19.74% | 18.30% | 18.05% | 17.80% | 17.31% | 15.19% | 16.26% |
July 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $241,844K ÷ ($—K + $1,192,210K)
= 20.29%
The analysis of Brady Corporation’s return on total capital (ROTC) over the specified period reveals a generally upward trend from October 31, 2020, to October 31, 2023. The ROTC increased from 16.26% in October 2020 to a peak of 23.94% in October 2023, indicating an improvement in the company's efficiency in generating earnings relative to its total capital base. This growth trajectory suggests successful operational and strategic initiatives that enhanced profitability and capital utilization during this timeframe.
Following the peak in October 2023, there appears to be a slight decline in the ROTC, registering at 23.59% in January 2024, and marginal decreases subsequently to 23.53% in July 2024 and 22.63% in October 2024. This minor reduction may reflect short-term factors such as market fluctuations, investment cycles, or temporary operational challenges.
Looking further into the projections extending to April 2025 and July 2025, the ROTC is anticipated to continue decreasing, reaching approximately 21.35% and 20.29%, respectively. These downward trends could signify planned strategic adjustments, reallocations of capital, or anticipated economic pressures that might influence profitability levels relative to total capital.
Overall, the period indicates a peak profitability efficiency around late 2023, followed by a gradual normalization or reduction in return rates. This pattern necessitates ongoing monitoring to assess whether the downward trend stabilizes or persists, informing perspectives on Brady Corporation’s future capital effectiveness and profitability management strategies.