Brady Corporation (BRC)
Debt-to-capital ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.08 | 0.05 | 0.09 | 0.04 | 0.00 |
July 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $90,935K ÷ ($90,935K + $1,066,660K)
= 0.08
The debt-to-capital ratio for Brady Corporation has fluctuated over the past five years. In July 2020, the company had a debt-to-capital ratio of 0.00, indicating that it had no debt relative to its capital during that period. However, in the subsequent years, the ratio increased, reaching its highest point of 0.09 in July 2022 before decreasing to 0.08 in July 2024.
A low debt-to-capital ratio suggests that the company relies less on debt financing and has a greater proportion of capital from equity. This can be seen as a positive indicator of financial health, as it indicates a lower risk of financial distress due to debt obligations.
On the other hand, a higher debt-to-capital ratio could signify higher financial leverage and greater financial risk, as the company may have higher debt obligations relative to its capital.
Overall, Brady Corporation's debt-to-capital ratio has shown variability over the years, and it is important for investors and stakeholders to monitor this metric to assess the company's financial leverage and risk profile.
Peer comparison
Jul 31, 2024