Brady Corporation (BRC)
Return on total capital
| 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 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 250,967 | 246,388 | 245,035 | 238,174 | 229,235 | 219,267 | 207,062 | 199,607 | 193,256 | 175,522 | 171,592 | 168,415 | 165,706 | 163,737 | 138,867 | 142,754 | 142,856 | 155,832 | 174,737 | 169,140 |
| Long-term debt | US$ in thousands | 90,935 | 63,774 | 48,090 | 52,267 | 49,716 | 50,849 | 77,281 | 99,000 | 95,000 | 77,000 | 83,000 | 67,000 | 38,000 | — | — | — | 0 | 48,988 | 50,127 | 51,076 |
| Total stockholders’ equity | US$ in thousands | 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 | 752,112 | 820,602 | 899,924 | 876,535 |
| Return on total capital | 21.68% | 22.69% | 22.55% | 22.74% | 22.03% | 20.96% | 19.82% | 19.75% | 19.20% | 17.71% | 16.35% | 16.34% | 16.55% | 17.21% | 15.11% | 16.21% | 18.99% | 17.92% | 18.39% | 18.23% |
July 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $250,967K ÷ ($90,935K + $1,066,660K)
= 21.68%
Brady Corporation's return on total capital has shown a positive trend over the past five years, indicating the company's ability to generate profits from its total capital investment. The return on total capital ranged from 15.11% to 22.74% during this period, with the latest figure standing at 21.68% as of July 31, 2024. This signifies that for every dollar of total capital employed, Brady Corporation is generating approximately 21.68 cents in profit.
The consistent improvement in the return on total capital reflects efficient capital utilization and effective management of both debt and equity in the company's capital structure. Investors and stakeholders may view this positively as it indicates the company's ability to generate higher returns on its invested capital, potentially leading to increased shareholder value and confidence in Brady Corporation's financial performance.
Peer comparison
Jul 31, 2024