Fox Corp Class B (FOX)

Cash conversion cycle

		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	—	—	—	—	—
Cash conversion cycle	days	155.84	130.37	182.05	181.59	183.54

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.18 + 61.65 – —
= 155.84

The cash conversion cycle of Fox Corp Class B has fluctuated over the past five years. In the latest fiscal year ending June 30, 2024, the company's cash conversion cycle was 155.84 days, which represents an increase from the previous year. The increase in the cash conversion cycle indicates that Fox Corp Class B took longer to convert its investments in inventory and accounts receivable into cash during the fiscal year.

Analyzing the trend further, the cash conversion cycle decreased in June 2023 compared to the previous year, showing efficiency in managing its working capital. However, in the two preceding years (June 2022 and June 2021), the cash conversion cycle was elevated, indicating potential challenges in managing its operating cycle effectively.

Overall, while fluctuations in the cash conversion cycle are normal for businesses, it is essential for Fox Corp Class B to closely monitor and manage its working capital components to optimize cash flows and operational efficiency.