Broadridge Financial Solutions Inc (BR)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	2,168,200	2,240,600	1,919,100	1,809,100	1,346,500
Debt-to-capital ratio		0.61	0.50	0.66	0.68	0.51

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,355,100K ÷ ($3,355,100K + $2,168,200K)
= 0.61

The debt-to-capital ratio for Broadridge Financial Solutions Inc has shown some variability over the past five years. As of June 30, 2024, the ratio stands at 0.61, indicating that 61% of the company's capital is financed through debt. This represents an increase from the previous year's ratio of 0.50 but is still lower than the ratios reported in 2022 and 2021, which were 0.66 and 0.68 respectively. In 2020, the ratio was closer to the current level at 0.51.

The upward trend in the debt-to-capital ratio from 2020 to 2022 suggests that Broadridge may have been increasing its reliance on debt financing during this period. However, the slight decrease in 2023 followed by a moderate increase in 2024 may indicate a fluctuating approach to capital structure management.

Overall, the current ratio of 0.61 indicates that Broadridge Financial Solutions Inc maintains a moderate level of debt relative to its total capital, reflecting a balanced mix of debt and equity financing in its operations. It is important to monitor future trends in the ratio to assess the company's ongoing capital structure decisions and financial risk management strategies.