Broadridge Financial Solutions Inc (BR)

Working capital 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
Revenue (ttm) US$ in thousands 6,889,200 6,768,100 6,682,900 6,498,700 6,506,900 6,401,600 6,320,800 6,208,700 6,060,900 5,944,800 5,832,800 5,799,500 5,709,100 5,517,800 5,373,900 5,169,200 4,993,700 4,824,000 4,684,100 4,597,900
Total current assets US$ in thousands 1,817,100 1,665,500 1,508,400 1,350,200 1,540,900 1,565,100 1,363,600 1,326,900 1,392,500 1,568,200 1,282,700 1,222,000 1,328,400 1,495,100 1,266,600 1,211,100 1,261,300 1,378,600 1,148,500 1,120,000
Total current liabilities US$ in thousands 1,861,300 1,264,300 1,114,300 972,400 1,421,800 1,122,400 971,100 924,000 2,397,800 1,163,000 1,018,900 991,700 1,313,400 1,176,800 1,087,800 966,600 1,288,000 1,002,500 837,900 744,000
Working capital turnover — 16.87 16.96 17.20 54.63 14.46 16.10 15.41 — 14.67 22.11 25.18 380.61 17.34 30.06 21.14 — 12.83 15.08 12.23

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,889,200K ÷ ($1,817,100K – $1,861,300K)
= —

The working capital turnover ratios for Broadridge Financial Solutions Inc. over the analyzed period demonstrate significant fluctuations, indicating varying efficiency in utilizing working capital to generate sales. In the fiscal year ending September 30, 2020, the ratio stood at 12.23, reflecting a moderate level of asset efficiency. This ratio increased notably by December 31, 2020, reaching 15.08, which suggests improved management or investment strategies during that period.

A slight decline was observed by the end of March 2021 to 12.83, indicating a potential dip in operational efficiency or changes in working capital management. The ratio was not available for June 30, 2021. By September 30, 2021, the ratio more than doubled to 21.14, signaling an enhancement in the company's ability to generate sales from its working capital.

The upward trend continued into December 2021, with the ratio reaching 30.06, the highest observed in the period, which could be interpreted as a period of optimal efficiency or strategic leverage of working capital. However, by March 31, 2022, the ratio declined to 17.34, suggesting some reduction in efficiency, possibly due to increased working capital levels or changes in sales volume.

Remarkably, a significant spike occurred by June 30, 2022, with the ratio soaring to 380.61. This extraordinary value may indicate anomalies such as data inconsistencies, accounting adjustments, or extraordinary transactions rather than a typical operational metric. Following this peak, the ratio decreased to 25.18 at September 30, 2022, and then stabilized somewhat around the low twenties through the end of 2022.

In 2023, the ratios demonstrated further variability, with a decrease to 14.67 in March, followed by a notable jump to 54.63 in June—the latter again likely attributable to extraordinary factors. The ratio then settled in the low sixteen range by September and December 2023.

Throughout 2024 and into 2025, the ratios exhibited relatively stable levels, predominantly fluctuating between approximately 14 and 17, indicating a return to more normalized operational efficiencies. The data points for June 30, 2024, and June 30, 2025, are missing, but the ratios for other periods suggest a consistent pattern of moderate asset utilization efficiency.

In summary, the working capital turnover for Broadridge Financial Solutions Inc. has experienced considerable volatility over the period reviewed, with notable anomalies likely driven by specific strategic, operational, or accounting factors, especially evident in the abnormally high ratios reported in mid-2022 and mid-2023. The overall trend indicates periods of both heightened efficiency and relative decline, emphasizing the importance of contextual analysis to interpret these fluctuations accurately.