Broadridge Financial Solutions Inc (BR)

Debt-to-equity 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-equity ratio		1.55	1.00	1.98	2.15	1.03

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,355,100K ÷ $2,168,200K
= 1.55

The debt-to-equity ratio of Broadridge Financial Solutions Inc has varied over the past five years, indicating changes in its capital structure and financial leverage. In the most recent period ending on June 30, 2024, the ratio stood at 1.55, reflecting an increase from the previous year's ratio of 1.00. This suggests that the company's reliance on debt in relation to equity has strengthened, which could potentially signify a higher level of financial risk.

Comparing the current ratio to the historical trend, it is evident that Broadridge's debt-to-equity ratio has fluctuated significantly. In the fiscal year ending June 30, 2022, the ratio peaked at 1.98 before decreasing slightly in the following year to 2.15. The subsequent decrease to 1.03 in the fiscal year ending June 30, 2020, indicates a significant shift towards a lower debt-to-equity ratio, potentially signaling a more conservative financial strategy during that period.

Overall, the varying debt-to-equity ratios reflect Broadridge Financial Solutions Inc's ongoing management of its debt and equity levels. Investors and stakeholders may view these fluctuations as indicators of the company's evolving financial health and risk management practices. It is essential to continue monitoring these ratios alongside other financial metrics to gain a comprehensive understanding of Broadridge's financial performance and stability.