Broadridge Financial Solutions Inc (BR)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	—	—	—	2.43	—	—	—	2.91	—	—	—	2.60	—	—	—	2.37	—	—	—
Days of sales outstanding (DSO)	days	57.07	63.86	56.82	50.28	59.77	66.43	51.52	53.86	58.66	67.30	53.83	52.87	60.54	65.36	52.94	51.55	59.96	65.90	48.70	49.15
Number of days of payables	days	16.92	16.01	15.53	13.41	25.06	12.88	11.25	11.99	13.43	15.74	14.75	14.55	21.71	18.08	18.13	15.49	25.44	19.35	14.34	13.17
Cash conversion cycle	days	40.15	47.85	41.29	36.87	37.15	53.55	40.27	41.87	48.14	51.57	39.08	38.33	41.42	47.27	34.82	36.06	36.89	46.55	34.36	35.97

June 30, 2025 calculation

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

The analysis of Broadridge Financial Solutions Inc.'s cash conversion cycle (CCC) over the provided period reveals notable fluctuations. Starting from September 30, 2020, with a CCC of approximately 36 days, the cycle experienced minor variations throughout 2020, reaching a low of around 34.36 days at the end of that year. In early 2021, an upward trend emerged, culminating in a peak of approximately 47.27 days by March 31, 2022, indicating a lengthening of the period between cash outflows and inflows.

Subsequent periods display a pattern of fluctuations, with the CCC generally remaining within the 36 to 48-day range. Notably, the cycle reached an inflection point at March 31, 2023, with a significant increase to roughly 51.57 days, suggesting a potential slowdown in receivables collection or extended payment terms. During the latter part of 2023, the CCC hovered around 40 to 42 days, reflecting some stabilization.

However, in the first quarter of 2024, there was a pronounced rise, with the cycle extending to approximately 53.55 days, the highest during the observed period. This increase may signal extended receivable collection times or potentially delayed payables. Conversely, in the subsequent quarters, the CCC decreased to around 37.15 days as of June 30, 2024, indicating some operational improvements or better cash management practices. By September 30, 2024, the CCC slightly increased again to approximately 36.87 days, and further observation into December 2024 and beyond shows a return to the 40 to 47-day range.

Overall, the company's cash conversion cycle has demonstrated considerable variability over the analyzed periods, moving from relatively short cycles of around 34 days to extended periods exceeding 50 days. These fluctuations suggest shifts in operational efficiency, receivables management, or payment policies. Longer cycles could imply delays in collecting receivables or extended payment terms to clients, whereas shorter cycles potentially reflect improved receivables collection, payment processes, or inventory management. Continuous monitoring of these trends is essential for assessing liquidity position and operational efficiency.