Broadridge Financial Solutions Inc (BR)
Cash conversion cycle
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.87 | 2.27 | 1.99 | 1.87 | 1.92 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | 19.21 | 10.48 | 16.62 | 20.04 | 13.56 |
| Cash conversion cycle | days | -17.35 | -8.21 | -14.64 | -18.17 | -11.64 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.87 + — – 19.21
= -17.35
Broadridge Financial Solutions Inc's cash conversion cycle has fluctuated over the past five years. The company's cash conversion cycle was positive in all years, indicating efficient management of its working capital. However, the cycle has varied from -18.17 days in 2021 to -8.21 days in 2023, signifying changes in the company's operating efficiency over time.
In Jun 2024, the cash conversion cycle improved significantly to -17.35 days compared to the previous year. This implies that Broadridge Financial Solutions Inc was able to convert its investments in inventory and accounts receivable into cash more quickly in 2024. A negative cash conversion cycle suggests that the company is able to collect cash from customers before paying its suppliers, which can be a favorable sign of liquidity and operational efficiency.
Overall, Broadridge Financial Solutions Inc has shown a trend of managing its cash conversion cycle efficiently, with improvements observed in 2024 compared to the prior year. This indicates that the company has been effective in managing its working capital and converting its assets into cash within a shorter period.
Peer comparison
Jun 30, 2024