Fox Corp Class B (FOX)
Activity ratios
Short-term
Turnover ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.88 | 4.73 | 2.89 | 2.94 | 2.86 |
| Receivables turnover | 5.92 | 6.85 | 6.57 | 6.36 | 6.52 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 3.08 | 4.27 | 2.33 | 2.25 | 2.20 |
The inventory turnover ratio for Fox Corp Class B has shown a slightly declining trend over the last five years, from 2.86 in 2020 to 3.88 in 2024. This indicates that the company's efficiency in managing its inventory has somewhat improved. The receivables turnover ratio has also decreased over the same period, from 6.52 in 2020 to 5.92 in 2024, suggesting a slower collection of receivables.
Interestingly, there is no data provided for the payables turnover ratio, which makes it challenging to assess the company's efficiency in paying its suppliers. However, the working capital turnover ratio has exhibited a similar pattern of decline as the inventory turnover ratio, indicating that the company's ability to generate sales relative to its working capital has improved.
Overall, while Fox Corp Class B has shown an improvement in its inventory turnover and working capital turnover ratios, there is room for further analysis and evaluation in terms of its receivables turnover and payables turnover ratios to provide a more comprehensive assessment of its operational efficiency and liquidity management.
Average number of days
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 94.18 | 77.09 | 126.46 | 124.22 | 127.53 |
| Days of sales outstanding (DSO) | days | 61.65 | 53.28 | 55.58 | 57.37 | 56.01 |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Fox Corp Class B's activity ratios, we can analyze the following:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand measure how efficiently a company manages its inventory. Fox Corp Class B's DOH has fluctuated over the past five years, ranging from 77.09 days to 127.53 days. The decrease from 2022 to 2023 indicates improved inventory management, with inventory being held for a shorter period before being sold in 2023 compared to 2022.
2. Days of Sales Outstanding (DSO):
- The days of sales outstanding represent the average number of days it takes for a company to collect revenue after a sale is made. Fox Corp Class B's DSO has varied between 53.28 days and 61.65 days over the past five years. The increase in DSO from 2023 to 2024 suggests a longer collection period for sales in 2024 compared to 2023, indicating potential challenges in collecting revenue efficiently.
3. Number of Days of Payables:
- The data provided does not include information on the number of days of payables for Fox Corp Class B. This ratio is essential to understanding how long the company takes to pay its suppliers, which is crucial for managing working capital effectively.
Overall, analyzing these activity ratios provides insights into Fox Corp Class B's inventory management efficiency, revenue collection effectiveness, and potential liquidity concerns based on the collection period of accounts receivable. The missing information on the days of payables limits a comprehensive assessment of the company's working capital management.
See also:
Fox Corp Class B Short-term (Operating) Activity Ratios
Long-term
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 8.25 | 8.73 | 8.31 | 7.56 | 8.21 |
| Total asset turnover | 0.64 | 0.68 | 0.63 | 0.56 | 0.57 |
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. Fox Corp Class B's fixed asset turnover has been consistently high over the past five years, ranging from 7.56 to 8.73. This indicates that the company is effectively utilizing its fixed assets to generate revenue, with the ratio peaking in 2023.
In comparison, the total asset turnover ratio measures how efficiently a company uses all its assets to generate sales. Fox Corp Class B's total asset turnover ratio has also shown a positive trend, increasing from 0.56 in 2021 to 0.68 in 2023 before decreasing slightly to 0.64 in 2024. This suggests that the company is effectively using its total assets to generate revenue, with a notable improvement in efficiency seen in 2023.
Overall, both the fixed asset turnover and total asset turnover ratios reflect positively on Fox Corp Class B's ability to efficiently utilize its assets to drive revenue growth over the analyzed period.