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.