Broadridge Financial Solutions Inc (BR)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,355,100 | 2,234,700 | 3,793,000 | 3,887,600 | 1,387,600 |
| Total assets | US$ in thousands | 8,242,400 | 8,233,200 | 8,168,800 | 8,119,800 | 4,889,800 |
| Debt-to-assets ratio | 0.41 | 0.27 | 0.46 | 0.48 | 0.28 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,355,100K ÷ $8,242,400K
= 0.41
Broadridge Financial Solutions Inc's debt-to-assets ratio has fluctuated over the past five years. In Jun 2024, the ratio stood at 0.41, indicating that 41% of the company's assets were financed by debt. This represents an increase from the previous year's ratio of 0.27. The significant increase in the debt-to-assets ratio from Jun 2023 to Jun 2024 may suggest that the company has taken on more debt to fund its operations or expansion initiatives.
Comparing the current ratio to the historical trend, Broadridge Financial Solutions Inc's debt-to-assets ratio in Jun 2024 is lower than the ratios in Jun 2022 and Jun 2021, which were 0.46 and 0.48, respectively. This may indicate an improvement in the company's debt management strategies. However, the current ratio is still higher than the ratio in Jun 2020, which was 0.28.
It is essential for investors and creditors to monitor this ratio closely as it provides insights into the company's leverage and solvency positions. A higher debt-to-assets ratio indicates a higher degree of financial risk, as the company relies more on debt to finance its operations and growth. Conversely, a lower ratio may indicate a more conservative financial structure.
Overall, Broadridge Financial Solutions Inc's debt-to-assets ratio has experienced fluctuations in recent years, and stakeholders should continue to assess the company's debt management practices and overall financial health.
Peer comparison
Jun 30, 2024