Broadridge Financial Solutions Inc (BR)

Fixed asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	6,506,800	5,917,200	5,621,400	4,936,200	4,466,500
Property, plant and equipment	US$ in thousands	162,200	145,700	150,900	177,200	161,600
Fixed asset turnover		40.12	40.61	37.25	27.86	27.64

June 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,506,800K ÷ $162,200K
= 40.12

Broadridge Financial Solutions Inc's fixed asset turnover has exhibited a consistent upward trend over the past five years, reflecting the company's efficiency in generating revenue from its investment in fixed assets. The ratio has improved from 27.64 in June 2020 to 40.12 in June 2024, indicating that the company has been able to generate a higher level of sales relative to its investment in fixed assets.

A high fixed asset turnover ratio suggests that Broadridge Financial Solutions Inc is effectively utilizing its fixed assets to generate revenue. This efficiency is crucial as it indicates that the company is operating productively and making optimal use of its resources. Furthermore, the consistent increase in the fixed asset turnover ratio over the years demonstrates the company's ability to improve its operations and generate more revenue from its fixed asset base.

Overall, the trend in Broadridge Financial Solutions Inc's fixed asset turnover ratio indicates that the company has been successful in maximizing the productivity of its fixed assets to drive revenue growth and improve operational efficiency.