Broadridge Financial Solutions Inc (BR)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,545,000 | 8,242,400 | 8,233,200 | 8,168,800 | 8,119,800 |
| Total stockholders’ equity | US$ in thousands | 2,655,200 | 2,168,200 | 2,240,600 | 1,919,200 | 1,809,200 |
| Financial leverage ratio | 3.22 | 3.80 | 3.67 | 4.26 | 4.49 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,545,000K ÷ $2,655,200K
= 3.22
The financial leverage ratio of Broadridge Financial Solutions Inc. demonstrates a general trend of decreasing over the observed period from June 30, 2021, to June 30, 2025. Specifically, the ratio declined from 4.49 in 2021 to 4.26 in 2022, then further to 3.67 in 2023. This suggests a reduction in the company's reliance on debt financing relative to its equity over this span.
While the ratio experienced a slight uptick to 3.80 in 2024, indicating a modest increase in financial leverage, it subsequently decreased again to 3.22 in 2025. This overall downward movement reflects a strategy or circumstance where the company has been decreasing its leverage, possibly aiming to reduce financial risk or improve financial stability.
The declining leverage ratio indicates that Broadridge has been progressively deleveraging, potentially by paying down debt, improving equity through retained earnings or equity issuance, or a combination of these strategies. This trend could enhance the company's financial resilience, lower interest expenses, and improve liquidity metrics, but it may also imply a cautious approach to growth or investment given the reduced leverage.
In summary, the company's financial leverage ratio shows a consistent decrease from 4.49 in 2021 to 3.22 in 2025, underscoring a shift toward a less leveraged capital structure over the analyzed period.
Peer comparison
Jun 30, 2025