Broadridge Financial Solutions Inc (BR)

Cash ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash and cash equivalents	US$ in thousands	561,500	304,400	252,300	224,700	274,500
Short-term investments	US$ in thousands	—	800	700	600	700
Total current liabilities	US$ in thousands	1,861,300	1,421,800	2,397,800	1,313,400	1,288,000
Cash ratio		0.30	0.21	0.11	0.17	0.21

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($561,500K + $—K) ÷ $1,861,300K
= 0.30

The cash ratio of Broadridge Financial Solutions Inc. over the specified period demonstrates notable fluctuations, reflecting changes in the company's immediate liquidity position. As of June 30, 2021, the cash ratio stood at 0.21, indicating that the company held approximately 21 cents in cash and cash equivalents for every dollar of current liabilities. This level suggests a modest capacity to cover short-term obligations with cash and liquid assets alone.

By June 30, 2022, the cash ratio had declined to 0.17, signifying a reduction in the company's cash cushion relative to its current liabilities. The decrease may imply a strategic deployment of cash resources into other assets or operational activities, or a temporary tightening of liquidity reserves.

The downward trend continued into June 30, 2023, when the cash ratio further diminished to 0.11. Such a decline indicates a significant drop in immediate liquidity, potentially raising concerns regarding the company's ability to meet short-term liabilities solely through cash and cash equivalents. This reduced liquidity buffer could be attributable to increased operational investments, cash outflows, or a shift in cash management strategies.

Conversely, the cash ratio experienced a marked improvement by June 30, 2024, rising back to 0.21. This rebound suggests an enhancement in the company's liquidity position, potentially through increased cash holdings, reduction in short-term liabilities, or a combination of both.

Projections for June 30, 2025, indicate a further strengthening of liquidity, with the cash ratio reaching 0.30. This level signifies that Broadridge Financial Solutions Inc. is maintaining a more robust cash reserve, equating to 30 cents in cash for each dollar of current liabilities. Such an increase clarifies an improved short-term liquidity outlook, providing greater assurance of the company's capacity to cover immediate obligations.

Overall, the company's cash ratio has exhibited a cyclical pattern over the analyzed period, with initial declines followed by subsequent recoveries and growth. This variation underscores shifts in liquidity management or operational strategies, emphasizing the importance of monitoring subsequent financial movements to assess the company's ongoing ability to meet short-term liabilities solely through cash and liquid equivalents.