Brady Corporation (BRC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.06 | 0.04 | 0.03 | 0.04 | 0.04 | 0.04 | 0.06 | 0.07 | 0.07 | 0.06 | 0.06 | 0.05 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.04 | 0.04 | 0.04 |
| Debt-to-capital ratio | 0.08 | 0.06 | 0.04 | 0.05 | 0.05 | 0.05 | 0.07 | 0.10 | 0.09 | 0.08 | 0.08 | 0.06 | 0.04 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.05 | 0.06 |
| Debt-to-equity ratio | 0.09 | 0.06 | 0.05 | 0.05 | 0.05 | 0.05 | 0.08 | 0.11 | 0.10 | 0.08 | 0.09 | 0.07 | 0.04 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.06 | 0.06 |
| Financial leverage ratio | 1.42 | 1.39 | 1.36 | 1.39 | 1.40 | 1.38 | 1.42 | 1.48 | 1.50 | 1.47 | 1.44 | 1.46 | 1.43 | 1.32 | 1.31 | 1.34 | 1.52 | 1.39 | 1.35 | 1.40 |
The solvency ratios of Brady Corporation, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, reflect the company's ability to meet its long-term financial obligations.
Over the past years, the debt-to-assets ratio has remained relatively stable, indicating that the company has maintained a conservative level of debt in relation to its total assets. The debt-to-capital and debt-to-equity ratios have also shown consistency, with gradual fluctuations observed. Brady Corporation has maintained a moderate level of debt in relation to its capital and equity, suggesting a balanced capital structure.
The financial leverage ratio has exhibited variability over time, reflecting fluctuations in the company's financial leverage position. Despite fluctuations, the ratio has generally remained within a reasonable range, indicating that Brady Corporation has managed its financial leverage effectively.
Overall, the solvency ratios of Brady Corporation suggest a prudent approach to managing debt and a stable financial position to meet its long-term obligations. Investors and creditors may view these ratios positively, as they indicate a healthy balance between debt and equity in the company's capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Brady Corporation's interest coverage ratio has shown a generally positive trend over the recent quarters, with values consistently above 1. This indicates that the company has generated significant earnings relative to its interest expenses, reflecting a strong ability to meet its debt obligations through operating income. The highest interest coverage ratio was observed in the most recent quarter at 80.28, and the lowest was in Oct 2019 at 58.39.
The increasing trend in the interest coverage ratio suggests that Brady Corporation's financial position has been improving, possibly due to efficient cost management or increasing profitability. A high interest coverage ratio is generally viewed favorably by investors and creditors as it signifies a lower risk of default on debt repayment. However, it is essential to monitor this ratio over time to ensure that the company can sustain its debt servicing capacity in the long run.