Broadridge Financial Solutions Inc (BR)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 693,100 1,139,100 1,097,700 1,012,800 1,025,100 1,033,300 1,017,100 997,400 932,300 819,800 779,000 745,800 765,700 778,700 761,600 768,400 753,700 709,900 707,300 651,800
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
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
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%

June 30, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $693,100K ÷ ($—K + $2,655,200K)
= 26.10%

The analysis of Broadridge Financial Solutions Inc.'s Return on Total Capital (ROTC) from September 2020 through June 2025 reveals notable fluctuations within this period. During the initial period ending September 30, 2020, the ROTC was approximately 46.10%, indicating strong profitability relative to the total capital invested. This upward trend continued, reaching a peak of approximately 49.32% at the end of 2020, suggesting enhanced efficiency or favorable market conditions.

In 2021, the ROTC experienced a slight decline, fluctuating between approximately 44.67% at the end of March and 43.57% at year-end. The first half of 2022 saw a further decrease, with the metric slipping to around 39.90% by June 30, 2022, and slightly declining further to 39.18% by September 2022. These changes may reflect increased capital costs or operational adjustments affecting overall profitability.

Following this period, a modest recovery was observed, with the ROTC increasing to 43.60% at the end of 2022, and then stabilizing around 41.01% to 41.61% during the first half of 2023. Significant improvement is evident in the third quarter of 2023, where the ROTC rose to 47.21%, culminating in nearly 49.19% at the end of 2023. Early 2024 saw a slight reduction to 45.58%, but the figure remained relatively high, with subsequent values oscillating around 45.90% to 47.28% through mid-2024.

The most recent data indicates a similar strength, with the ROTC at 45.90% on September 30, 2024, and reaching 49.26% by the end of 2024. A slight decrease is observable in the first quarter of 2025, with the figure at approximately 47.82%. The data shows a notable decline in the second quarter of 2025 to around 26.10%, which represents a significant deviation from the prior trend and suggests potential strategic shifts, capital restructuring, or extraordinary factors affecting profitability.

Overall, Broadridge's Return on Total Capital has generally been high throughout the observed period, with values consistently above 40% in most periods, indicating effective utilization of capital in generating earnings. The recent dip in mid-2025 warrants further investigation to understand underlying causes, such as changes in operational efficiency, capital structure adjustments, or market conditions influencing profitability.