Broadridge Financial Solutions Inc (BR)

Quick ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash	US$ in thousands	304,400	252,300	224,700	274,500	476,600
Short-term investments	US$ in thousands	800	700	600	700	500
Receivables	US$ in thousands	-9,700	-7,200	-6,800	-9,300	-9,800
Total current liabilities	US$ in thousands	1,421,800	2,397,800	1,313,400	1,288,000	1,341,000
Quick ratio		0.21	0.10	0.17	0.21	0.35

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($304,400K + $800K + $-9,700K) ÷ $1,421,800K
= 0.21

The quick ratio of Broadridge Financial Solutions Inc has varied over the past five years, ranging from 0.10 to 0.35. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its most liquid assets.

In 2023, the quick ratio was particularly low at 0.10, suggesting a potential liquidity challenge. However, the ratio improved in 2024 to 0.21, although it is still below 1, indicating that the company may still face liquidity constraints.

Overall, the downward trend in the quick ratio from 2020 to 2023 could be concerning, but the slight improvement in 2024 may signal a positive development. It is important for Broadridge Financial Solutions Inc to continue monitoring and managing its liquidity position effectively to ensure it can meet its short-term obligations efficiently.