Broadridge Financial Solutions Inc (BR)

Payables turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	4,752,300	4,572,900	4,275,500	4,116,900	3,570,800
Payables	US$ in thousands	220,300	314,000	157,300	244,900	248,900
Payables turnover		21.57	14.56	27.18	16.81	14.35

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $4,752,300K ÷ $220,300K
= 21.57

The payables turnover ratio for Broadridge Financial Solutions Inc. demonstrates significant fluctuations over the specified periods. As of June 30, 2021, the ratio stood at 14.35, indicating that the company paid its payables approximately 14.35 times during that fiscal year. In the subsequent year, the ratio increased to 16.81, reflecting a moderate improvement in the efficiency of paying off suppliers or a reduction in accounts payable levels relative to purchases.

A notable rise is observed by June 30, 2023, where the payables turnover ratio sharply increased to 27.18. This indicates a substantial acceleration in the company's payment activity, likely reflecting improved liquidity management, strategic shifts towards quicker settlement of obligations, or a reduction in accounts payable balances relative to purchases.

However, the ratio declined sharply in the following year, reaching 14.56 by June 30, 2024. This decrease suggests a slowdown in the speed of paying payables, possibly due to increased credit terms, a rise in accounts payable, or a strategic shift favoring extended payment periods.

By June 30, 2025, the ratio partially recovered to 21.57, indicating an improvement in the company's payment cycle efficiency compared to the previous year, though it remained below the peak achieved in 2023.

Overall, the payables turnover trend reflects periods of both acceleration and deceleration in payment behavior, which may be influenced by working capital management strategies, supplier relationships, or changes in the company's purchase and payable policies. The fluctuations suggest a dynamic approach to managing short-term liabilities rather than a consistent pattern of payment.