Broadridge Financial Solutions Inc (BR)
Financial leverage ratio
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,242,400 | 8,215,400 | 7,999,800 | 8,071,200 | 8,233,200 | 8,432,300 | 8,051,300 | 8,090,600 | 8,168,800 | 8,349,500 | 8,115,900 | 8,028,400 | 8,119,800 | 5,186,800 | 4,858,300 | 4,749,700 | 4,889,800 | 4,913,500 | 4,384,600 | 4,220,100 |
| Total stockholders’ equity | US$ in thousands | 2,168,200 | 2,267,200 | 2,067,600 | 2,112,700 | 2,240,600 | 1,998,900 | 1,786,600 | 1,903,700 | 1,919,100 | 1,821,000 | 1,748,100 | 1,753,800 | 1,809,100 | 1,589,300 | 1,434,000 | 1,413,800 | 1,346,500 | 1,202,500 | 1,125,400 | 1,143,400 |
| Financial leverage ratio | 3.80 | 3.62 | 3.87 | 3.82 | 3.67 | 4.22 | 4.51 | 4.25 | 4.26 | 4.59 | 4.64 | 4.58 | 4.49 | 3.26 | 3.39 | 3.36 | 3.63 | 4.09 | 3.90 | 3.69 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,242,400K ÷ $2,168,200K
= 3.80
Broadridge Financial Solutions Inc's financial leverage ratio has displayed some fluctuation over the past few quarters. The ratio indicates the extent to which the company relies on debt to finance its operations and investments. A higher financial leverage ratio suggests a higher level of debt relative to equity, indicating higher financial risk.
From the data provided, we observe that Broadridge's financial leverage ratio has ranged from 3.26 to 4.64 during the period under review. The ratio was highest in the first quarter of 2022 at 4.64, signaling a significant reliance on debt during that period. Subsequently, there was a decrease in the ratio in the following quarters.
In the most recent quarter, the financial leverage ratio stood at 3.80, indicating a moderate level of leverage compared to the previous quarters. The downward trend in the ratio could suggest a reduction in debt levels relative to equity, which may indicate improved financial stability and reduced risk as the company possibly paid down debt or increased equity.
Overall, monitoring the financial leverage ratio over time is essential to assess Broadridge Financial Solutions Inc's capital structure and financial risk management strategies. A lower ratio may indicate less reliance on debt financing, while a higher ratio could signal higher financial risk and the need for effective debt management strategies.
Peer comparison
Jun 30, 2024