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Brady (BRC) Operating Income : $239 Mil (TTM As of Jan. 2024)


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What is Brady Operating Income?

Brady's Operating Income for the three months ended in Jan. 2024 was $54 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $239 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Brady's Operating Income for the three months ended in Jan. 2024 was $54 Mil. Brady's Revenue for the three months ended in Jan. 2024 was $323 Mil. Therefore, Brady's Operating Margin % for the quarter that ended in Jan. 2024 was 16.71%.

Good Sign:

Brady Corp operating margin is expanding. Margin expansion is usually a good sign.

Brady's 5-Year average Growth Rate for Operating Margin % was 4.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Brady's annualized ROC % for the quarter that ended in Jan. 2024 was 14.93%. Brady's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 70.16%.


Brady Operating Income Historical Data

The historical data trend for Brady's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Brady Operating Income Chart

Brady Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 162.43 151.84 167.13 193.01 225.21

Brady Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 48.78 63.00 62.05 59.73 53.93

Brady Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $239 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Brady  (NYSE:BRC) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Brady's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

ROC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=215.704 * ( 1 - 21.84% )/( (1096.33 + 1162.057)/ 2 )
=168.5942464/1129.1935
=14.93 %

where

Invested Capital(Q: Oct. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1383.413 - 111.731 - ( 175.352 - max(0, 251.694 - 535.065+175.352))
=1096.33

Invested Capital(Q: Jan. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1407.604 - 101.687 - ( 143.86 - max(0, 237.302 - 506.52+143.86))
=1162.057

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Brady's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2023  Q: Jan. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=226.44/( ( (170.652 + max(121.244, 0)) + (215.463 + max(138.116, 0)) )/ 2 )
=226.44/( ( 291.896 + 353.579 )/ 2 )
=226.44/322.7375
=70.16 %

where Working Capital is:

Working Capital(Q: Oct. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(179.97 + 166.916 + 12.827) - (111.731 + 0 + 126.738)
=121.244

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(185.569 + 164.944 + 12.147) - (101.687 + 0 + 122.857)
=138.116

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Brady's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2024 )/Revenue (Q: Jan. 2024 )
=53.926/322.624
=16.71 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Brady Operating Income Related Terms

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Brady (BRC) Business Description

Traded in Other Exchanges
Address
6555 West Good Hope Road, Milwaukee, WI, USA, 53223
Brady Corp provides identification solutions and workplace safety products. The company offers identification and healthcare products that are sold under the Brady brand to maintenance, repair, and operations as well as original equipment manufacturing customers. Products include safety signs and labelling systems, material identification systems, wire identification, patient identification, and people identification. Brady also provides workplace safety and compliance products such as safety and compliance signs, asset tracking labels, and first-aid products. The largest end market is the United States.
Executives
Bentley Curran officer: VP Chief Information Officer 6555 WEST GOOD HOPE ROAD, MILWAUKEE WI 53223
Brett Wilms officer: President - EMEA & Australia 6555 W GOOD HOPE ROAD, MILWAUKEE WI 53223
Nancy Lee Gioia director 6555 WEST GOOD HOPE RD., MILWAUKEE WI 53223
Olivier Bojarski officer: President, Identification Soln C/O BELDEN INC., 1 N. BRENTWOOD BOULEVARD, 15TH FLOOR, SAINT LOUIS MO 63105
Frank W Harris director 244 SUMMER ST POLYMER BLDG 603, AKRON OH 53202
Elizabeth P Pungello director 6555 WEST GOOD HOPE RD., MILWAUKEE WI 53223
Russell Shaller director 6555 WEST GOOD HOPE RD, MILWAUKEE WI 53223
Smee Joanne Collins director XEROX CORPORATION, 201 MERRITT 7, NORWALK CT 06851
Vineet A Nargolwala director 529 PLEASANT STREET, MAIL STATION B-1, ATTLEBORO MA 02703
Andrew Gorman officer: General Counsel&Corp Secretary 6555 WEST GOOD HOPE ROAD, MILWAUKEE WI 53223
Pascal Deman officer: VP & GM Workplace Safety 6555 WEST GOOD HOPE ROAD, MILWAUKEE WI 53223
Thomas J Felmer officer: SR VP CFO 6555 WEST GOOD HOPE ROAD, MILWAUKEE WI 53223
Louis T Bolognini officer: SR VP - GENERAL COUNSEL P O BOX 9, SUGAR LAND TX 77487
J Michael Nauman director, officer: President & CEO C/O MOLEX INCORPORATED, 2222 WELLINGTON COURT, LISLE IL 60532
Bradley C Richardson director

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