Brady Corporation (BRC)

The interest coverage ratios of Brady Corporation over the specified periods reveal significant fluctuations, indicating varying degrees of ease in meeting interest obligations. As of July 31, 2021, the interest coverage ratio was exceptionally high at 392.36, suggesting that the company's operating income vastly exceeded its interest expenses, reflecting a very comfortable position to service debt.

By July 31, 2022, this ratio declined markedly to 151.45, though it still remained at a robust level, indicating continued strong earnings relative to interest obligations but with a notable decrease in coverage strength. The trend further persisted into July 31, 2023, with the ratio decreasing to 64.77. This considerable reduction signals a significant decline in accessibility of operating income to cover interest expenses, which may raise some concern about the company's debt servicing capacity.

In the subsequent years, improvements are observed, with the ratio increasing to 80.28 on July 31, 2024, and then declining again to 50.95 on July 31, 2025. While these figures show some variability, the ratios remain at levels that still suggest the company retains a reasonable cushion for interest payments, though the diminished ratios in recent years point toward somewhat tighter coverage compared to earlier periods.

Overall, the trend from 2021 through 2025 demonstrates a substantial reduction in the interest coverage ratio from extraordinarily high levels to more moderate, yet still acceptable, levels. The company’s decreasing interest coverage indicates an ongoing need to monitor operating income performance and interest expense management to ensure continued financial stability and debt servicing capacity.