Broadridge Financial Solutions Inc (BR)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,017,100 | 936,400 | 759,900 | 678,700 | 624,900 |
| Long-term debt | US$ in thousands | 3,355,100 | 2,234,700 | 3,793,000 | 3,887,600 | 1,387,600 |
| Total stockholders’ equity | US$ in thousands | 2,168,200 | 2,240,600 | 1,919,100 | 1,809,100 | 1,346,500 |
| Return on total capital | 18.41% | 20.92% | 13.30% | 11.91% | 22.86% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,017,100K ÷ ($3,355,100K + $2,168,200K)
= 18.41%
Broadridge Financial Solutions Inc's return on total capital has shown some fluctuations over the past five years. In the most recent fiscal year ending June 30, 2024, the return on total capital was 18.41%, down from 20.92% in the previous year. This decline may indicate a potential decrease in the company's efficiency in generating profits from its total capital employed.
Comparing the latest return on total capital to previous years, Broadridge's performance in 2024 was still higher than the levels seen in 2022 and 2021, which were 13.30% and 11.91%, respectively. However, it was lower than the exceptional performance in 2020 when the return on total capital was 22.86%.
Overall, the trend in return on total capital for Broadridge Financial Solutions Inc suggests some variability in the company's ability to generate profits relative to its total capital base in recent years. It would be important to further investigate the factors contributing to these fluctuations to understand the company's financial performance more comprehensively.
Peer comparison
Jun 30, 2024