Broadridge Financial Solutions Inc (BR)

Short-term

Turnover ratios

The activity ratios for Broadridge Financial Solutions Inc., as detailed in the provided data, depict certain trends and notable periods of activity within the company’s operational framework.

Inventory Turnover:
The inventory turnover ratio was largely indeterminate or not reported in most periods, with significant figures recorded on June 30, 2021 (153.91), June 30, 2022 (140.51), and June 30, 2024 (149.93). These high values suggest periods where inventory management was highly efficient, turning over nearly 140 to 150 times annually, indicative of low inventory levels relative to sales or a rapid product movement cycle. Post-2021, the data points reflect a marked stabilization in turnover rates, emphasizing consistent inventory efficiency during recent periods.

Receivables Turnover:
This ratio demonstrates fluctuations over time. The highest activity appears around September 2024 (7.26), implying effective collection policies during that period, while the lowest points occur in March 2021 (5.54) and March 2024 (5.49), indicating periods of relatively slower receivables collection. The overall trend demonstrates a responsive management of receivables, with ratios generally oscillating within a range of approximately 5.4 to 7.3, suggestive of a consistently reasonable collection cycle aligned with industry standards.

Payables Turnover:
Payables turnover ratios exhibit variability, with higher rates observed on December 31, 2023 (32.45) and September 30, 2023 (30.45), indicating periods where the company paid its suppliers more frequently within the year. Conversely, during June 2022 (16.81) and June 2024 (14.56), the ratios decreased substantially, hinting at extended payment periods. Such fluctuations could reflect changes in cash management strategies or supplier payment negotiations over time.

Working Capital Turnover:
This ratio shows significant volatility. Periods such as March 31, 2022 (17.34), June 30, 2022 (380.61), and June 30, 2024 (54.63) highlight moments of either heightened efficiency or exceptional leverage of working capital. A notably elevated figure on June 30, 2022, suggests a period of very high turnover, potentially driven by optimized working capital utilization or atypical operational conditions. Conversely, lower ratios seen in earlier periods (e.g., March 31, 2023 at 14.67) imply more conservative or stabilized working capital management. Fluctuations suggest that the company adjusts its operational leverage in response to strategic priorities or external factors.

Summary:
Overall, Broadridge’s activity ratios reflect periods of high operational efficiency, especially in inventory and working capital management, notably during mid-2021 and mid-2022. The receivables and payables turnovers have maintained relatively stable ranges, indicative of consistent credit and payment policies. Sudden spikes and drops in these ratios primarily align with strategic adjustments or external market conditions, demonstrating an active management approach towards operational liquidity and working capital. The absence of data in certain periods suggests either reporting gaps or periods where activity ratios were not deemed relevant or were temporarily suspended.

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Average number of days

The activity ratios for Broadridge Financial Solutions Inc., primarily focusing on Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Days of Payables, demonstrate specific operational dynamics over the reported periods.

Days of Inventory on Hand (DOH) data indicates minimal to no recorded activity for most periods, with only two recent instances: June 30, 2021, at 2.37 days, and June 30, 2022, at 2.60 days, followed by a slight increase to 2.91 days on June 30, 2023, and a decrease to 2.43 days on June 30, 2024. The consistent low values suggest that Broadridge maintains very efficient inventory management, with inventory turnover being rapid or inventory not constituting significant assets on the balance sheet.

Days of Sales Outstanding (DSO) exhibits considerable fluctuations over the reporting periods. Starting at approximately 49.15 days on September 30, 2020, the DSO increased sharply to 65.90 days in March 2021, indicating that the collection period lengthened considerably during that timeframe. Subsequently, the DSO fluctuates, reaching a peak of 67.30 days in March 2023, which may signal extended credit terms or collection delays. In more recent periods, particularly on September 30, 2023, the DSO decreased to approximately 53.86 days, and further slightly to 50.28 days on September 30, 2024, suggesting improvements in receivables collection efficiency. The projected values for 2025 indicate stabilization around 63.86 to 57.07 days, remaining above pre-2021 levels but showing gradual normalization.

Number of Days of Payables reflects variability in payment practices and possibly supplier relationships. For instance, the period ending December 31, 2020, shows 14.34 days, increasing modestly through 2021, with a notable peak of 25.06 days on June 30, 2024. The recent periods record a decrease to approximately 11.25 days as of December 31, 2023, and then again an increase toward mid-2024. Overall, the payables period suggests a tendency to maintain a relatively short window for settling liabilities, though there was a temporary extension in mid-2024.

In summary, Broadridge’s activity ratios depict a company with highly efficient inventory management, fluctuating but generally manageable receivables collection times, and relatively conservative payables practices. The observed patterns may reflect strategic operational decision-making aimed at balancing liquidity management with supplier and customer relationships, with recent improvements indicating enhanced receivables collection efficiency and consistent payables management.

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Long-term

The analysis of Broadridge Financial Solutions Inc.'s long-term activity ratios reveals notable trends over the observed periods. The Fixed Asset Turnover ratio demonstrates fluctuations, starting at 28.43 times as of September 30, 2020, and experiencing variations with a significant dip to 16.12 times on September 30, 2022. Following this decline, the ratio rises sharply, reaching a peak of 43.05 times on March 31, 2023, indicating increased efficiency in using fixed assets to generate revenue. However, by September 30, 2023, it declines slightly to 43.12, with subsequent data points for late 2023 and 2024 reflecting a downward trend to 19.83 times by December 31, 2024, and further to 20.31 times by March 31, 2025. This pattern suggests periods of both increased utilization and potential overinvestment or asset underutilization at different times.

The Total Asset Turnover ratio shows a relatively stable upward trend, starting at 0.97 times on September 30, 2020, and gradually increasing to 0.82 times by March 31, 2025. Notable fluctuations include a decline to 0.62 times on June 30, 2021, followed by consistent growth, culminating in a ratio of 0.82 in early 2025. This indicates that the company has generally enhanced its efficiency in generating sales from its total assets over the period, despite temporary setbacks.

Overall, the long-term activity ratios reflect periods of operational and asset utilization adjustments. The fluctuations in fixed asset efficiency suggest shifts in asset investment strategies, possibly including new capital expenditures or divestments. The steady improvement in total asset turnover indicates a gradual enhancement in overall asset efficiency, aligning with potential strategic initiatives aimed at optimizing asset use to support revenue growth.