Broadridge Financial Solutions Inc (BR)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 31.02% | 30.41% | 30.25% | 29.64% | 29.72% | 30.03% | 29.93% | 29.77% | 29.46% | 28.29% | 27.94% | 27.70% | 27.89% | 27.75% | 27.99% | 28.46% | 28.49% | 28.73% | 28.48% | 27.69% |
| Operating profit margin | 17.25% | 16.72% | 16.30% | 15.44% | 15.63% | 16.09% | 16.04% | 16.06% | 15.45% | 13.86% | 13.43% | 12.83% | 13.31% | 12.68% | 12.89% | 13.61% | 13.59% | 14.43% | 14.59% | 13.71% |
| Pretax margin | 15.37% | 14.74% | 14.26% | 13.31% | 13.48% | 13.82% | 13.73% | 13.73% | 13.12% | 11.71% | 11.48% | 11.20% | 11.77% | 12.50% | 12.72% | 13.56% | 13.94% | 13.57% | 13.84% | 12.82% |
| Net profit margin | 12.19% | 11.65% | 11.36% | 10.57% | 10.73% | 10.92% | 10.82% | 10.81% | 10.40% | 9.33% | 9.13% | 9.01% | 9.44% | 9.99% | 10.04% | 10.62% | 10.96% | 10.71% | 11.07% | 10.27% |
The profitability ratios of Broadridge Financial Solutions Inc. over the analyzed period reveal a generally stable and gradually improving trend in the company's profit margins. The gross profit margin exhibits a consistent upward trajectory, increasing from 27.69% as of September 30, 2020, to 31.02% by June 30, 2025. This indicates an enhancement in the company's ability to manage cost of goods sold efficiently relative to revenue, reflecting improvements in operational efficiency or product mix.
The operating profit margin shows a moderate but steady increase over the same period, rising from 13.71% in September 2020 to approximately 17.25% by June 2025. This suggests that after accounting for operating expenses, the company has been able to improve its profitability, potentially through cost control measures, operational efficiencies, or revenue growth.
Pre-tax margins display a similar upward trend, increasing from 12.82% in September 2020 to about 15.37% in June 2025. This pattern indicates that the company’s ability to convert operating income into pre-tax income has improved, possibly due to lower non-operating expenses or better tax management strategies.
Net profit margins follow the same positive trend, rising from 10.27% in September 2020 to approximately 12.19% by June 2025. The improvement in net profit margin further confirms effective management of all expenses, including taxes, and signifies enhanced overall profitability.
In summary, Broadridge Financial Solutions Inc. has demonstrated a consistent increase across all key profitability ratios over the analyzed period. This trend underscores the company's enhanced ability to generate profits at various levels of its operations, reflecting favorable operational performance, cost management, and revenue growth dynamics.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.91% | 13.63% | 13.24% | 12.51% | 12.34% | 12.54% | 12.67% | 12.36% | 11.37% | 9.77% | 9.73% | 9.20% | 9.30% | 8.38% | 8.54% | 8.76% | 8.36% | 13.42% | 14.06% | 13.27% |
| Return on assets (ROA) | 9.82% | 9.50% | 9.22% | 8.57% | 8.47% | 8.51% | 8.55% | 8.31% | 7.66% | 6.58% | 6.62% | 6.46% | 6.60% | 6.60% | 6.65% | 6.84% | 6.74% | 9.96% | 10.67% | 9.95% |
| Return on total capital | 26.10% | 47.82% | 49.26% | 45.90% | 47.28% | 45.58% | 49.19% | 47.21% | 41.61% | 41.01% | 43.60% | 39.18% | 39.90% | 42.76% | 43.57% | 43.81% | 41.66% | 44.67% | 49.32% | 46.10% |
| Return on equity (ROE) | 31.62% | 33.10% | 34.07% | 31.14% | 32.20% | 30.83% | 33.07% | 31.76% | 28.14% | 27.74% | 29.81% | 27.44% | 28.09% | 30.28% | 30.88% | 31.30% | 30.26% | 32.52% | 36.16% | 33.41% |
The comprehensive analysis of Broadridge Financial Solutions Inc.'s profitability ratios over the period from September 2020 through June 2025 reveals several key trends and insights regarding its operational efficiency and overall profitability.
Operating Return on Assets (Operating ROA):
The Operating ROA exhibits a positive overall trend, rising from 13.27% as of September 2020 to a peak of 13.91% in June 2025. Initially, there is a steady increase, with notable improvement from late 2022 onward, reflecting enhanced operational efficiency relative to asset utilization. The fluctuation in this ratio within the period suggests periods of operational refinement, ultimately culminating in sustainable performance improvements towards mid-2025.
Return on Assets (ROA):
The ROA follows a similar trajectory but at a lower level compared to Operating ROA, indicating the impact of non-operating factors such as financial and tax expenses. It begins at 9.95% in September 2020, reaching a low point of approximately 6.46% in September 2022, but steadily increases thereafter, reaching 9.82% in June 2025. This suggests an improving ability of the company to generate net income relative to its total assets, especially post-2022, likely driven by operational efficiencies and better expense management.
Return on Total Capital:
This ratio, which measures profitability relative to both debt and equity financing, displays considerable variability. It starts at 46.10% in September 2020, peaks at 49.32% at the end of 2020, and subsequently declines to a low of 26.10% in June 2025. The significant drop in the latter period indicates increased capital costs or restructuring of capital structure components. Despite this, interim periods exhibit resilience, with ratios exceeding 40% at various points, signaling periods of robust capital utilization.
Return on Equity (ROE):
ROE demonstrates a dynamic pattern, beginning at a high of 33.41% in September 2020, peaking at 36.16% in December 2020, then generally declining through 2022. It reaches a low of approximately 27.44% in September 2022 but recovers thereafter, exceeding 33% again by December 2024, reaching 33.10% in March 2025. The recent upward trend indicates improved profitability attributable to shareholders, perhaps supported by operational improvements and capital management strategies.
Summary of Insights:
Overall, Broadridge has shown a trend toward increasing profitability ratios from mid-2022 onwards, with notable improvements in Operating ROA, ROA, and ROE, reflecting enhanced operational efficiency and effective utilization of assets and equity. The decline in Return on Total Capital towards mid-2025 suggests challenges in capital costs or structure but is somewhat counterbalanced by the concurrent increases in other profitability metrics. These patterns indicate that Broadridge has managed to sustain profitability improvements post-2022, with an optimistic outlook for further value creation driven by operational efficiencies.