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

Company name
Symbol
Interest coverage
Brady Corporation
BRC
80.28
Amcor PLC
AMCR
3.57
Hillenbrand Inc
HI
9.66