Broadridge Financial Solutions Inc (BR)

Cash conversion cycle

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Days of inventory on hand (DOH)	days	—	2.43	2.91	2.60	2.37
Days of sales outstanding (DSO)	days	57.07	59.78	58.66	60.54	59.96
Number of days of payables	days	16.92	25.06	13.43	21.71	25.44
Cash conversion cycle	days	40.15	37.15	48.14	41.42	36.89

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 57.07 – 16.92
= 40.15

The cash conversion cycle (CCC) of Broadridge Financial Solutions Inc. over the analyzed period exhibits notable fluctuations, reflecting changes in the company's efficiency in managing its working capital components—inventory turnover, receivables collection, and payables deferral.

As of June 30, 2021, the CCC stood at approximately 36.89 days, indicating a relatively efficient cycle in converting investments in working capital into cash flows. By June 30, 2022, the cycle extended to approximately 41.42 days, representing a rise of about 4.53 days, which may suggest a slight deterioration in either receivables collection, inventory management, or payables strategy.

This trend persisted into June 30, 2023, with the CCC reaching approximately 48.14 days, an increase of roughly 6.72 days from the prior year. This escalation signals a further elongation of the period it takes the company to convert its investments into cash, potentially indicative of increased receivables, extended inventory holdings, or delayed payables.

Subsequently, the cycle experienced a significant decrease by June 30, 2024, reverting to approximately 37.15 days. This reduction of approximately 10.99 days suggests an improvement in the company's operational efficiencies, particularly in collection and payment processes. However, the cycle increased again slightly by June 30, 2025, reaching about 40.15 days, reflecting a modest elongation in the cycle duration.

Overall, the CCC trend indicates periods of operational challenges and subsequent adjustments in liquidity management. The fluctuations might correspond to strategic shifts, seasonal factors, or external economic conditions impacting the company’s ability to manage receivables and payables effectively. The brief elongation observed in 2023 could point to temporary operational inefficiencies or strategic credit terms, while the subsequent reduction in 2024 suggests efforts to tighten working capital management. The cyclical nature of these changes underscores the importance of analyzing underlying operational drivers to fully understand the dynamics influencing Broadridge's cash flow cycle.