Broadridge Financial Solutions Inc (BR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	304,400	235,600	277,000	234,000	252,300	331,600	280,000	227,100	224,700	277,200	281,200	316,700	274,500	355,800	365,600	356,600	476,600	402,100	234,000	358,300
Short-term investments	US$ in thousands	800	800	700	700	700	700	600	600	600	600	700	600	700	1,000	600	400	500	500	400	300
Total current liabilities	US$ in thousands	1,421,800	1,122,400	971,200	924,000	2,397,800	1,163,000	1,018,900	991,700	1,313,400	1,176,800	1,087,800	966,800	1,288,000	1,002,600	837,900	743,900	1,341,000	1,255,000	1,124,800	1,040,900
Cash ratio		0.21	0.21	0.29	0.25	0.11	0.29	0.28	0.23	0.17	0.24	0.26	0.33	0.21	0.36	0.44	0.48	0.36	0.32	0.21	0.34

June 30, 2024 calculation

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

The cash ratio of Broadridge Financial Solutions Inc has shown variability over the past several quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

Analyzing the trend of the cash ratio for Broadridge Financial Solutions Inc, we can observe that the ratio was relatively stable around 0.2 to 0.3 from December 2019 to June 2021. However, there was a significant increase to 0.44 in March 2021, which indicates a considerable improvement in the company's liquidity position.

Subsequently, the cash ratio saw a downward trend from September 2021 to June 2023, fluctuating between 0.11 to 0.29. This decline may suggest potential challenges in the company's ability to cover short-term obligations with its cash reserves during this period.

From December 2023 onwards, the cash ratio showed some recovery, reaching 0.29 in December 2023 and maintaining around 0.21 to 0.25 in the following quarters. While the cash ratio has not returned to the highs of early 2021, the recent stability indicates a more consistent liquidity position compared to the mid-2021 to mid-2023 period.

Overall, the analysis of Broadridge Financial Solutions Inc's cash ratio suggests fluctuations in the company's liquidity position over the past few years, with improvements in some periods and challenges in others. It will be important to monitor future trends in the cash ratio to assess the company's ongoing ability to meet short-term financial obligations.