Broadridge Financial Solutions Inc (BR)

Days of inventory on hand (DOH)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Inventory turnover		195.59	160.69	183.52	195.40	190.08
DOH	days	1.87	2.27	1.99	1.87	1.92

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 195.59
= 1.87

The Days of Inventory on Hand (DOH) of Broadridge Financial Solutions Inc has shown some fluctuations over the past five years. In the most recent fiscal year ending June 30, 2024, the company had a DOH of 1.87 days, which indicates that on average, it took approximately 1.87 days for Broadridge to sell its inventory.

Comparing this to the previous years, we observe that the DOH was 2.27 days in 2023, 1.99 days in 2022, 1.87 days in 2021, and 1.92 days in 2020. The fluctuation in the trend of DOH may indicate changes in inventory management efficiency within the company.

A lower DOH generally signifies that a company is managing its inventory efficiently, as it is able to quickly turn over its inventory into sales. On the other hand, a higher DOH may indicate overstocking or slow-moving inventory, which could tie up working capital and lead to potential obsolescence.

In summary, Broadridge Financial Solutions Inc's DOH has shown variability over the past five years, with the most recent year showing a relatively low DOH, suggesting efficient inventory management. However, it is essential for the company to consistently monitor and optimize its inventory levels to maintain a healthy balance between inventory turnover and stocking levels.