Brady Corporation (BRC)
Interest coverage
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 250,967 | 229,235 | 193,256 | 165,706 | 142,856 |
| Interest expense | US$ in thousands | 3,126 | 3,539 | 1,276 | 437 | 2,166 |
| Interest coverage | 80.28 | 64.77 | 151.45 | 379.19 | 65.95 |
July 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $250,967K ÷ $3,126K
= 80.28
The interest coverage ratio for Brady Corporation has fluctuated over the past five years. In July 2024, the interest coverage ratio was 80.28, indicating that the company's operating income was more than sufficient to cover its interest expenses. This suggests a strong ability to meet interest obligations comfortably.
Compared to the previous years, the interest coverage ratio was lower in July 2023 at 64.77 but significantly higher in July 2022 at 151.45. The substantial increase in 2022 reflects a significant improvement in the company's ability to pay interest expenses from its operating income.
In July 2021, the interest coverage ratio was exceptionally high at 379.19, indicating a robust financial position with ample operating income to cover interest costs. However, in July 2020, the ratio decreased to 65.95, indicating a relative decrease in the company's ability to cover interest expenses compared to the previous year.
Overall, the fluctuations in Brady Corporation's interest coverage ratio over the five-year period suggest varying levels of financial stability and capacity to service its debt obligations.
Peer comparison
Jul 31, 2024