Broadridge Financial Solutions Inc (BR)

Short-term

Turnover ratios

Broadridge Financial Solutions Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities in generating revenue.

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period. Broadridge's inventory turnover has shown a fluctuating trend over the past five years, ranging from 160.69 to 195.59. This indicates that Broadridge efficiently manages its inventory levels, with a peak in turnover in 2024.

2. Receivables Turnover:
- The absence of data for receivables turnover precludes an analysis of the efficiency with which Broadridge collects on its credit sales. It's important to note that a higher turnover ratio is generally preferred as it signifies a more effective collection of outstanding receivables.

3. Payables Turnover:
- The payables turnover ratio evaluates how quickly a company pays its suppliers. Broadridge's payables turnover has fluctuated over the years, with a range of 18.21 to 34.83. A lower payables turnover could indicate a longer payment period to suppliers, while a higher turnover suggests quick payment cycles.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how effectively a company utilizes its working capital to generate sales revenue. Broadridge's working capital turnover has shown significant variation, from 54.63 to 374.76 (unavailable data for some years). A higher turnover ratio implies efficient utilization of working capital to support revenue generation.

In summary, Broadridge Financial Solutions Inc has demonstrated varying levels of efficiency in managing its inventory, payables, and working capital over the past five years. Further analysis of these ratios, alongside profitability and liquidity metrics, can provide a more comprehensive assessment of the company's overall operational efficiency.

---

Average number of days

Based on the activity ratios provided for Broadridge Financial Solutions Inc over the past five years, we can observe the following trends:

1. Days of Inventory on Hand (DOH):
- Broadridge's DOH has shown some variability over the years, ranging from a low of 1.87 days in 2024 to a high of 2.27 days in 2023. This indicates that the company manages its inventory efficiently, with lower DOH values suggesting a faster turnover of inventory. The decreasing trend in recent years implies a more efficient management of inventory levels, which could be a positive sign for the company's working capital management.

2. Days of Sales Outstanding (DSO):
- Unfortunately, data for Days of Sales Outstanding (DSO) is not provided in the table, making it difficult to assess the efficiency of Broadridge in collecting accounts receivable. Lower DSO values indicate faster collection of receivables, which can improve cash flow and liquidity. Monitoring this ratio could provide insights into the company's credit policies and collection practices.

3. Number of Days of Payables:
- Broadridge's Number of Days of Payables has shown fluctuation over the years, with a range of 10.48 days in 2023 to 20.04 days in 2021. A higher number of days of payables indicates that the company takes longer to pay its suppliers, which could be beneficial in preserving cash flow but might strain vendor relationships if extended too far. The increase in payables days from 2021 to 2024 suggests a potential strategy to manage working capital effectively by delaying payment to suppliers.

Overall, while Broadridge Financial Solutions Inc appears to manage its inventory efficiently and strategically extend its payables, further information on the Days of Sales Outstanding ratio would be necessary to provide a comprehensive analysis of the company's overall working capital management and operational efficiency.

---

Long-term

Broadridge Financial Solutions Inc's long-term activity ratios indicate its efficiency in generating sales relative to its assets. The fixed asset turnover has shown a consistently high performance over the years, with a slight decline in 2022 and 2023 before rebounding in 2024. This indicates that Broadridge is utilizing its fixed assets effectively to generate revenue, as reflected in the high turnover ratios.

On the other hand, the total asset turnover ratio has fluctuated over the years, with a significant decrease in 2021 before recovering in 2022 and 2023. The ratio in 2020 was particularly high, indicating efficient utilization of total assets to generate sales. However, the drop in 2021 suggests potential inefficiencies or a shift in the composition of assets.

Overall, Broadridge Financial Solutions Inc has demonstrated a strong ability to generate sales relative to its assets, particularly in terms of fixed assets. The company's focus on efficient asset utilization is reflected in its high fixed asset turnover ratios, while fluctuations in the total asset turnover ratio warrant further investigation into the company's asset management strategies.