Broadridge Financial Solutions Inc (BR)
Solvency ratios
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.22 | 3.80 | 3.67 | 4.26 | 4.49 |
The analysis of Broadridge Financial Solutions Inc.'s solvency ratios over the period from June 2021 to June 2025 reveals the following key insights:
1. Debt Ratios (Debt-to-Assets, Debt-to-Capital, and Debt-to-Equity):
Throughout the entire period, these ratios consistently stand at zero, indicating that the company has not utilized any form of debt financing during these years. This lack of leverage suggests a fully equity-financed capital structure, eliminating the risks associated with debt obligations.
2. Financial Leverage Ratio:
The financial leverage ratio exhibits a declining trend over the period, decreasing from 4.49 in June 2021 to 3.22 in June 2025. Despite this decrease, the ratio remains relatively high, implying that the company maintains a significant level of financial leverage. A higher leverage ratio generally signifies greater use of equity relative to total assets, suggesting robust equity backing with limited reliance on debt.
3. Implications for Solvency:
The pervasive absence of debt indicates a highly solvent position with little to no financial burden from borrowed funds. The company’s reliance solely on equity enhances its long-term financial stability and reduces insolvency risk related to debt servicing. The declining financial leverage ratio suggests a trend toward reduced leverage, further strengthening the company's solvency profile.
In summary, Broadridge Financial Solutions Inc. demonstrates a conservative financial stance characterized by zero debt levels and a stable, yet gradually decreasing, financial leverage ratio. This indicates strong solvency, minimal financial risk, and a capital structure that is entirely equity-based during the analyzed period.
Coverage ratios
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 6.84 | 6.52 | 8.66 | 11.80 |
The interest coverage ratio for Broadridge Financial Solutions Inc. has exhibited a declining trend over the observed period from June 30, 2021, to June 30, 2025. Specifically, the ratio decreased from 11.80 in 2021 to 8.66 in 2022, indicating a reduction in the company's ability to meet its interest obligations from operating earnings. This decline continued into 2023, with the ratio dropping further to 6.52. The year 2024 saw a marginal increase to 6.84, suggesting a slight improvement in interest coverage. However, by June 30, 2025, the ratio plummets to zero, implying that the company either faced a situation where its operating earnings were insufficient to cover interest expenses entirely or possibly experienced significant financial restructuring such as interest remission, debt forgiveness, or other extraordinary measures.
Overall, the trend points toward a weakening of the company's ability to service interest expenses solely from operational profitability, with marked deterioration evident in the most recent period. This shift warrants close monitoring of the company's financial health, particularly regarding its debt management and profitability sustainability in the coming periods.