Broadridge Financial Solutions Inc (BR)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.02% | 29.72% | 29.46% | 27.89% | 28.49% |
| Operating profit margin | 17.25% | 15.63% | 15.45% | 13.31% | 13.59% |
| Pretax margin | 15.37% | 13.48% | 13.12% | 11.77% | 13.94% |
| Net profit margin | 12.19% | 10.73% | 10.40% | 9.44% | 10.96% |
The profitability ratios of Broadridge Financial Solutions Inc. over the period from June 30, 2021, to June 30, 2025, demonstrate a generally positive trajectory with periods of improvement across various measures.
The gross profit margin increased from 28.49% in 2021 to 29.72% in 2024, with a further rise to 31.02% projected for 2025. This indicates a gradual enhancement in the company's ability to manage direct costs and maintain strong gross profitability.
The operating profit margin showed a similar upward trend, rising from 13.59% in 2021 to 15.63% in 2024, and reaching 17.25% in 2025. This suggests improved operational efficiency and effective control over operating expenses, leading to higher operating income relative to revenue.
Pre-tax margins moved from 13.94% in 2021 to an expected 15.37% in 2025. Despite a dip to 11.77% in 2022, the margin recovered and steadily increased thereafter, reflecting overall profitability before tax adjustments.
The net profit margin, which accounts for all expenses including taxes, decreased from 10.96% in 2021 to 9.44% in 2022 but then demonstrated consistent growth, reaching 12.19% in 2025. This pattern indicates that the company has regained and improved its net profitability over the period, despite transient declines.
Overall, the company's profitability ratios reveal a positive trend towards higher profitability margins across gross, operating, pre-tax, and net measures, suggesting enhanced control over costs, operational efficiency, and effective management of expenses leading to improved bottom-line results.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.91% | 12.34% | 11.37% | 9.30% | 8.36% |
| Return on assets (ROA) | 9.82% | 8.47% | 7.66% | 6.60% | 6.74% |
| Return on total capital | 0.00% | 47.39% | 41.79% | 39.59% | 37.51% |
| Return on equity (ROE) | 31.62% | 32.20% | 28.14% | 28.09% | 30.26% |
The analysis of Broadridge Financial Solutions Inc.'s profitability ratios over the period from June 30, 2021, to June 30, 2025, indicates a generally positive trend in the company's operational efficiency and profitability metrics.
The Operating Return on Assets (Operating ROA) shows a steady increase, rising from 8.36% in 2021 to 13.91% in 2025. This upward trajectory suggests that the company has been improving its ability to generate operating income relative to its total assets, reflecting enhanced operational efficiency and effective management of its assets.
Similarly, the Return on Assets (ROA), which accounts for total net income relative to assets, has increased from 6.74% in 2021 to 9.82% in 2025. The consistent growth indicates that the company's overall profitability in relation to its assets has strengthened over the period.
The Return on Total Capital exhibits an increasing trend from 37.51% in 2021 to 47.39% in 2024. This metric demonstrates improved efficiency in capital utilization, although a data anomaly is observed in 2025, where the ratio appears to reset to 0.00%, which may be due to data reporting issues or a change in calculation methodology.
Return on Equity (ROE) reflects the company's ability to generate profits from shareholders' equity. The ratios fluctuate slightly but generally maintain a high level, with values of 30.26% in 2021, decreasing marginally to 28.09% in 2022, remaining close to this level through 2023, and then increasing to 32.20% in 2024 before slightly decreasing to 31.62% in 2025. The overall pattern indicates a strong and relatively stable profitability from shareholders’ perspective, with periods of slight fluctuation.
In summary, Broadridge Financial Solutions Inc. demonstrates a consistent improvement in most profitability ratios over this period, indicating effective management and increasing efficiency in generating profits relative to assets, capital, and equity. However, specific anomalies warrant further investigation to clarify potential data discrepancies.