Brady Corporation (BRC)
Debt-to-equity 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-equity ratio | 0.09 | 0.06 | 0.05 | 0.05 | 0.05 | 0.05 | 0.08 | 0.11 | 0.10 | 0.08 | 0.09 | 0.07 | 0.04 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.06 | 0.06 |
July 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $90,935K ÷ $1,066,660K
= 0.09
Based on the data provided, the debt-to-equity ratio of Brady Corporation has been relatively low and stable over the past few years, indicating a conservative capital structure. The ratio has ranged from 0.00 to 0.11, with the most recent data point in July 2024 showing a ratio of 0.09.
A debt-to-equity ratio below 1 generally indicates that the company relies more on equity financing rather than debt to fund its operations and growth. In the case of Brady Corporation, the consistent low ratios suggest that the company has a strong equity base relative to its debt obligations.
Furthermore, the gradual increase in the debt-to-equity ratio from 0.00 in January 2021 to 0.11 in October 2022 may indicate that the company took on more debt relative to equity during that period. However, this trend reversed, and the ratio decreased to 0.09 as of July 2024, suggesting a potential deleveraging or a shift back towards a more balanced capital structure.
Overall, the analysis of Brady Corporation's debt-to-equity ratios over the past few years indicates a prudent approach to managing its financial leverage, maintaining a relatively low level of debt compared to equity.
Peer comparison
Jul 31, 2024