Broadridge Financial Solutions Inc (BR)

Return on equity (ROE)

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
Net income (ttm) US$ in thousands 839,500 788,500 759,100 687,000 698,100 699,000 683,800 671,000 630,500 554,500 532,600 522,300 539,100 551,400 539,800 548,900 547,500 516,800 518,600 472,400
Total stockholders’ equity US$ in thousands 2,655,200 2,382,300 2,228,300 2,206,400 2,168,200 2,267,200 2,067,700 2,112,800 2,240,600 1,998,900 1,786,600 1,903,600 1,919,200 1,821,100 1,748,100 1,753,900 1,809,200 1,589,300 1,434,100 1,413,800
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%

June 30, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $839,500K ÷ $2,655,200K
= 31.62%

The analysis of Broadridge Financial Solutions Inc.'s return on equity (ROE) over the specified period reveals a generally robust profitability profile with notable fluctuations. Starting from a high of 33.41% as of September 30, 2020, the ROE experienced a moderate decline through the subsequent periods, reaching a low of 27.44% on September 30, 2022. This downward trend indicates a period of relative erosion in the company's ability to generate returns for shareholders relative to equity employed.

Between September 30, 2022, and March 31, 2023, the ROE stabilized somewhat, registering at 27.74%, before increasing to 28.14% by June 30, 2023. This modest recovery suggests a slight improvement in operational efficiency or profit margins. The upward movement continued into the third quarter of 2023, with the ROE reaching 31.76%, and further ascending to 33.07% by the end of 2023. These increases reflect periods of strategic or operational gains, enhancing shareholder returns.

The forecasted data for 2024 and 2025 indicates an optimistic outlook, with projected ROE figures suggesting improvements and sustained profitability. The ROE for March 31, 2024, is approximately 30.83%, rising significantly to 34.07% on December 31, 2024, before slightly decreasing to 33.10% and then stabilizing at around 31.62% in June 2025. This trajectory suggests that Broadridge is expected to maintain a high level of return efficiency, reinforcing its capacity to generate shareholder value despite observable fluctuations.

Overall, the company's ROE demonstrates resilience with periods of contraction and expansion but maintains a level indicative of effective utilization of equity to generate earnings for shareholders. The recent upward trend and positive projections suggest a favorable outlook for Broadridge’s profitability and capital efficiency.