Broadridge Financial Solutions Inc (BR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.87 | — | — | — | 2.27 | — | — | — | 1.99 | — | — | — | 1.90 | — | — | — | 1.97 | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 19.22 | 10.31 | 8.94 | 9.47 | 10.48 | 12.18 | 11.39 | 11.17 | 16.65 | 13.94 | 14.17 | 12.33 | 20.34 | 15.65 | 11.65 | 10.71 | 13.88 | 13.75 | 8.78 | 8.63 |
| Cash conversion cycle | days | -17.35 | -10.31 | -8.94 | -9.47 | -8.21 | -12.18 | -11.39 | -11.17 | -14.66 | -13.94 | -14.17 | -12.33 | -18.45 | -15.65 | -11.65 | -10.71 | -11.91 | -13.75 | -8.78 | -8.63 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.87 + — – 19.22
= -17.35
Broadridge Financial Solutions Inc has maintained a negative cash conversion cycle over the past few quarters, indicating efficient management of cash flow and working capital. The company has consistently been able to collect cash from customers before having to pay its suppliers and vendors. This has led to shortened cash cycles, with the company achieving a range of -8.94 days to -17.35 days.
The negative cash conversion cycle means that Broadridge is able to convert its investments in inventory and accounts receivable into cash quickly, improving its liquidity position. This efficiency suggests effective management of inventory levels, prompt collection of receivables, and extended payment terms with suppliers.
Overall, Broadridge's cash conversion cycle data reflects strong working capital management practices, enabling the company to operate efficiently and maintain a healthy cash position.
Peer comparison
Jun 30, 2024