Broadridge Financial Solutions Inc (BR)

Payables turnover

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Cost of revenue (ttm) US$ in thousands 4,752,300 4,709,700 4,661,100 4,572,500 4,572,800 4,478,900 4,429,300 4,360,300 4,275,400 4,263,100 4,203,000 4,193,200 4,116,900 3,986,800 3,869,700 3,697,800 3,570,800 3,438,300 3,350,300 3,324,700
Payables US$ in thousands 220,300 206,600 198,300 168,000 314,000 158,100 136,500 143,200 157,300 183,800 169,800 167,100 244,900 197,500 192,200 156,900 248,900 182,300 131,600 120,000
Payables turnover 21.57 22.80 23.51 27.22 14.56 28.33 32.45 30.45 27.18 23.19 24.75 25.09 16.81 20.19 20.13 23.57 14.35 18.86 25.46 27.71

June 30, 2025 calculation

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

The payables turnover ratio of Broadridge Financial Solutions Inc. demonstrates notable fluctuations over the analyzed period from September 2020 through June 2025. Initially, the ratio stood at 27.71 at the end of September 2020, indicating a relatively high frequency of paying its suppliers within the fiscal year, suggesting efficient management of accounts payable or a pattern of quicker payments.

Throughout 2021, the ratio experienced a declining trend, reaching a low of 14.35 by June 2021. This decrease may suggest a deliberate extension of payment terms, slowed payables turnover, or changes in supplier payment strategies. The ratio recovered somewhat in the latter part of 2021 and into 2022, returning to around 20, with the highest point observed at 25.09 in September 2022.

The pattern continues with fluctuations, notably an increase to 32.45 in December 2023, the highest level exhibited in the dataset, implying a significant lengthening of payable periods or a strategic delay in payments. During this period, the ratio's rise can reflect either supply chain considerations, cash flow management strategies, or changes in supplier relationships.

However, the ratio then declines sharply to 14.56 in June 2024, signaling a rapid shortening of payable cycles or a response to changing operational priorities, before rising again to approximately 27.22 in September 2024 and subsequently settling around 23.51 by December 2024. The early part of 2025 shows a declining trend, with the ratio decreasing to 21.57 in June 2025.

Overall, the payables turnover ratio for Broadridge Financial Solutions Inc. exhibits considerable variability, with periods of both elongation and contraction in the payables cycle. Such fluctuations may reflect strategic shifts in payment policies, liquidity management approaches, or responses to operational and market factors impacting the company's payables practices over time.