Brady Corporation (BRC)
Financial leverage ratio
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,251 | 1,515,570 | 1,389,260 | 1,367,330 | 1,377,760 |
| Total stockholders’ equity | US$ in thousands | 1,192,210 | 1,066,660 | 990,919 | 911,298 | 963,028 |
| Financial leverage ratio | 0.02 | 1.42 | 1.40 | 1.50 | 1.43 |
July 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,251K ÷ $1,192,210K
= 0.02
The financial leverage ratio of Brady Corporation has exhibited notable fluctuations over the analyzed period from July 31, 2021, to July 31, 2025. Specifically, the ratio increased from 1.43 in 2021 to a peak of 1.50 in 2022, indicating a rise in the company's use of debt relative to its equity during this interval. Subsequently, the ratio declined slightly to 1.40 in 2023, reflecting a modest decrease in leverage. This downward trend persisted into 2024, where the ratio was recorded at 1.42, suggesting a stabilization around the previous year's level.
However, a dramatic change is observed in 2025, with the ratio sharply dropping to 0.02. This significant reduction indicates an almost complete alleviation of financial leverage, implying that the company substantially decreased its debt relative to equity during this period, potentially through deleveraging strategies or capitalization adjustments.
Overall, the analyzed data demonstrates a trend of increasing leverage from 2021 through 2022, followed by a gradual reduction in leverage over the subsequent years, culminating in an extremely low leverage ratio in 2025. This progression highlights a strategic shift in the company's capital structure, moving from moderate leverage toward a near-equity position by the end of the period.