Broadridge Financial Solutions Inc (BR)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	304,400	252,300	224,700	274,500	476,600
Short-term investments	US$ in thousands	800	700	600	700	500
Total current liabilities	US$ in thousands	1,421,800	2,397,800	1,313,400	1,288,000	1,341,000
Cash ratio		0.21	0.11	0.17	0.21	0.36

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($304,400K + $800K) ÷ $1,421,800K
= 0.21

Broadridge Financial Solutions Inc's cash ratio has fluctuated over the past five years, ranging from 0.11 to 0.36. The cash ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio suggests better liquidity and a lower risk of financial distress.

In 2020, the cash ratio was the highest at 0.36, indicating a strong ability to meet short-term obligations with available cash. However, in 2021 and 2023, the cash ratio dropped to 0.21 and 0.11 respectively, potentially signaling a decrease in liquidity or an increase in short-term liabilities relative to cash holdings.

In 2022, the cash ratio improved to 0.17, although it remained lower compared to 2020. The most recent data for 2024 shows a slight improvement in the cash ratio to 0.21, bringing it back to the level seen in 2021.

Overall, Broadridge Financial Solutions Inc's cash ratio has shown variability over the years, with fluctuations that may indicate changes in the company's liquidity position and ability to cover immediate financial obligations. Investors and stakeholders should monitor these trends to assess the company's financial health and risk management strategies adequately.