Fox Corp Class B (FOX)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	94.18	95.86	149.22	105.43	77.09	71.53	195.43	159.38	126.46	127.17	190.98	193.14	124.22	127.56	189.37	238.89	167.80	182.03	307.28	309.38
Days of sales outstanding (DSO)	days	61.65	64.99	75.17	59.07	53.28	66.63	76.40	58.50	55.58	63.00	80.43	60.89	57.37	63.19	80.02	59.01	56.01	72.22	85.19	66.82
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	155.84	160.85	224.39	164.50	130.37	138.16	271.83	217.88	182.05	190.17	271.41	254.02	181.59	190.75	269.39	297.89	223.81	254.25	392.47	376.20

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 shown fluctuations over the past several quarters. The cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flow from sales.

The company's cash conversion cycle ranged from a lower of 130.37 days to a high of 392.47 days over the period analyzed. It seems that Fox Corp Class B has experienced challenges in efficiently managing its working capital and converting its assets into cash during certain quarters.

A shorter cash conversion cycle indicates that the company is able to quickly turn its inventory into sales and collect cash from customers, which is generally seen as a positive sign. Conversely, a longer cash conversion cycle may mean that the company is facing delays in converting its resources into revenue.

It is important for Fox Corp Class B to closely monitor its cash conversion cycle and work towards optimizing it, especially during quarters where the cycle is longer. This could involve improving inventory management, tightening credit terms, or streamlining the accounts receivable collection process to enhance the company's overall cash flow efficiency.