Brady Corporation (BRC)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.08 | 0.06 | 0.04 | 0.05 | 0.05 | 0.05 | 0.07 | 0.10 | 0.09 | 0.08 | 0.08 | 0.06 | 0.04 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.05 | 0.06 |
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
Brady Corporation's debt-to-capital ratio has shown some fluctuations over the past several quarters. The ratio was relatively stable around the 0.05 mark from July 2020 to January 2023 before seeing a slight increase to 0.07 in the first quarter of 2023. It then peaked at 0.10 in October 2022, indicating a higher proportion of debt in the capital structure. However, there was a subsequent decrease to 0.04 in January 2024, followed by further declines in the ratio, reaching 0.06 in April 2024 and 0.08 in July 2024.
Overall, the debt-to-capital ratio for Brady Corporation has exhibited some variability, but it generally tends to stay within a relatively low range, suggesting a conservative approach to financing with a lower reliance on debt. This trend indicates that the company has been managing its debt levels effectively, which can be viewed positively by investors and creditors as it signifies a healthier financial position. It will be important to continue monitoring the ratio in future periods to assess any potential shifts in the company's capital structure and debt management practices.
Peer comparison
Jul 31, 2024