Broadridge Financial Solutions Inc (BR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.08 | 1.39 | 1.40 | 1.44 | 0.58 | 1.35 | 1.26 | 1.23 | 1.01 | 1.27 | 1.16 | 1.25 | 0.98 | 1.38 | 1.37 | 1.51 | 0.99 | 1.08 | 0.90 | 1.05 |
| Quick ratio | 0.21 | 0.20 | 0.28 | 0.25 | 0.10 | 0.28 | 0.27 | 0.22 | 0.17 | 0.23 | 0.25 | 0.32 | 0.21 | 0.35 | 0.43 | 0.47 | 0.35 | 0.32 | 0.21 | 0.34 |
| 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 |
Broadridge Financial Solutions Inc's liquidity ratios show fluctuations over the periods analyzed.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from 0.58 to 1.51. A ratio above 1 indicates that the company has more current assets than current liabilities. Although the current ratio has been consistently above 1 in recent periods, there was a significant drop in the ratio in Q2 2023.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Broadridge's quick ratio has varied from 0.10 to 0.47. A quick ratio above 1 is generally considered favorable, indicating that the company can quickly cover its short-term obligations without relying on inventory sales. The company's quick ratio has been below 1 in most periods, suggesting a potential challenge in meeting short-term obligations.
The cash ratio, which is the most conservative liquidity ratio, focuses solely on the company's ability to cover its current liabilities with its cash and cash equivalents. Broadridge's cash ratio has ranged from 0.11 to 0.48. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on other current assets. While the company's cash ratio has been relatively volatile, it has generally been above 0.2 in recent periods.
Overall, Broadridge Financial Solutions Inc's liquidity ratios indicate some variability in the company's ability to meet short-term obligations. The current ratio has been relatively stable above 1, but the quick ratio suggests a more constrained liquidity position. The cash ratio provides a conservative view, highlighting the company's ability to cover current liabilities with cash on hand.
Additional liquidity measure
| 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 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 |
The cash conversion cycle of Broadridge Financial Solutions Inc has varied over the periods analyzed. The company has generally maintained a negative cash conversion cycle, indicating efficient management of working capital. The trend shows some fluctuations, with a range between -17.35 days and -8.21 days.
In the most recent period, the cash conversion cycle stood at -17.35 days, suggesting that the company is converting its inventory and receivables into cash at a faster rate than paying its liabilities. This negative cash conversion cycle indicates that Broadridge Financial Solutions Inc is operating efficiently in terms of managing its cash flow and working capital requirements.
Overall, the company's ability to quickly convert its investments in inventory and accounts receivable into cash is an indication of effective working capital management, contributing to improved liquidity and financial health.