Brady Corporation (BRC)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 250,967 | 246,388 | 245,035 | 238,174 | 229,235 | 219,267 | 207,062 | 199,607 | 193,256 | 175,522 | 171,592 | 168,415 | 165,706 | 163,737 | 138,867 | 142,754 | 142,856 | 155,832 | 174,737 | 169,140 |
| Interest expense (ttm) | US$ in thousands | 3,126 | 2,937 | 2,962 | 3,411 | 3,539 | 3,399 | 2,975 | 1,988 | 1,276 | 912 | 714 | 513 | 437 | 478 | 975 | 1,571 | 2,166 | 2,669 | 2,749 | 2,819 |
| Interest coverage | 80.28 | 83.89 | 82.73 | 69.83 | 64.77 | 64.51 | 69.60 | 100.41 | 151.45 | 192.46 | 240.32 | 328.29 | 379.19 | 342.55 | 142.43 | 90.87 | 65.95 | 58.39 | 63.56 | 60.00 |
July 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $250,967K ÷ $3,126K
= 80.28
Brady Corporation's interest coverage ratio has exhibited fluctuations over the past several quarters. The interest coverage ratio measures the company's ability to meet interest obligations with its earnings before interest and taxes (EBIT).
Looking at the data, the interest coverage ratio has generally been strong, indicating that Brady Corporation has had more than sufficient earnings to cover its interest expenses. For instance, in the most recent period ending July 31, 2024, the interest coverage ratio was 80.28, showing the company's ability to cover its interest payments approximately 80 times over.
Over the quarters, the interest coverage ratio has shown some variability, reaching peaks above 300 in some quarters and dropping to around 60 in others. It is evident that Brady Corporation has enjoyed periods of exceptionally high interest coverage, which suggests a strong financial position. However, the company should be mindful of quarters where the ratio dropped significantly, as it may indicate potential challenges in meeting interest obligations in those periods.
Overall, the trend in Brady Corporation's interest coverage ratio demonstrates a generally healthy financial position with the ability to comfortably meet its interest expenses.
Peer comparison
Jul 31, 2024