Broadridge Financial Solutions Inc (BR)

Working capital turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	6,506,800	6,247,900	6,165,000	6,056,600	5,917,200	5,818,600	5,726,600	5,706,800	5,621,400	5,451,700	5,316,100	5,122,100	4,954,600	4,784,900	4,640,300	4,550,700	4,482,700	4,332,000	4,311,500	4,300,300
Total current assets	US$ in thousands	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	1,328,000	1,361,000	1,010,600	1,095,100
Total current liabilities	US$ in thousands	1,421,800	1,122,400	971,200	924,000	2,397,800	1,163,000	1,018,900	991,700	1,313,400	1,176,800	1,087,800	966,800	1,288,000	1,002,600	837,900	743,900	1,341,000	1,255,000	1,124,800	1,040,900
Working capital turnover		54.63	14.11	15.71	15.03	—	14.36	21.71	24.78	374.76	17.13	29.73	20.97	—	12.73	14.94	12.10	—	40.87	—	79.34

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,506,800K ÷ ($1,540,900K – $1,421,800K)
= 54.63

Working capital turnover measures how efficiently a company utilizes its working capital to generate sales. A higher ratio indicates better efficiency in managing working capital.

Broadridge Financial Solutions Inc's working capital turnover has fluctuated significantly over the years. In June 2022, it reached a high of 374.76, suggesting an exceptional ability to generate sales relative to its working capital. This could be due to effective management of current assets and liabilities.

However, the ratio dropped sharply in the following quarters, indicating a potential decrease in efficiency in utilizing working capital to drive sales. The ratio remained relatively stable in the subsequent periods but varied widely.

The significant fluctuations in the working capital turnover ratio may indicate changes in the company's working capital management practices or shifts in its business operations. Further analysis of the company's financial and operational performance would be needed to understand the underlying factors driving these changes and assess the overall efficiency of Broadridge Financial Solutions Inc in using its working capital.