Fox Corp Class B (FOX)

Cash conversion cycle

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Days of inventory on hand (DOH)	days	18.00	15.61	43.51	30.42	24.11	25.42	37.28	26.61	19.62	17.72	50.18	38.84	30.46	30.56	46.07	47.72	32.45	32.62	47.96	61.80
Days of sales outstanding (DSO)	days	55.35	73.70	83.96	68.41	61.72	65.05	75.25	59.17	53.28	67.08	76.76	58.62	55.58	61.70	79.28	60.44	57.37	63.19	80.02	59.01
Number of days of payables	days	44.59	—	—	26.25	26.30	29.04	35.34	30.08	28.37	30.41	37.13	27.68	26.41	29.78	30.94	28.84	29.34	29.77	78.06	25.48
Cash conversion cycle	days	28.77	89.31	127.47	72.58	59.53	61.43	77.19	55.70	44.54	54.39	89.80	69.78	59.63	62.48	94.41	79.32	60.49	66.04	49.93	95.33

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 18.00 + 55.35 – 44.59
= 28.77

The analysis of Fox Corp Class B's cash conversion cycle (CCC) over the specified period reveals significant fluctuations and trends. The CCC measures the efficiency with which the company converts its investments in inventory and receivables into cash flows from sales, offset by its payable periods.

From September 30, 2020, the CCC was approximately 95.33 days, indicating that it took nearly three months for the company to convert its investments into cash. This figure decreased substantially by December 31, 2020, to roughly 49.93 days, suggesting an improvement in cash conversion efficiency, likely driven by reductions in inventory or receivables or extensions in payable periods.

Throughout 2021, the CCC exhibited some volatility, rising again to around 94.41 days by December 31, 2021, before decreasing in early 2022 to approximately 62.48 days and further reducing to below 60 days (around 59.63 days on June 30, 2022). This indicates periods of enhanced operational efficiency, possibly attributable to improved receivables collection, inventory management, or supplier negotiations.

In late 2022, the CCC increased again, reaching 89.80 days as of December 31.2022, before decreasing markedly in early 2023 to approximately 54.39 days on March 31, 2023. This decline persisted into mid-2023 with the figure reaching as low as 28.77 days on June 30, 2025, reflecting highly efficient cash conversion practices during this period.

However, the trend reverses subsequently. In late 2023, the CCC again rises, reaching 77.19 days in December 2023 and climbing further to about 127.47 days by December 2024. The substantial increase suggests a loosening in cash flow efficiency, potentially due to slower receivables collection, increased inventory levels, or changes in payment terms.

In early 2025, the CCC begins to decline again, reaching approximately 89.31 days in March, but swiftly decreases to around 28.77 days by June 2025. The latter figure indicates a very rapid cash conversion cycle, possibly reflecting operational improvements or strategic financial management.

Overall, the company has experienced cyclical variations in its cash conversion cycle, oscillating between periods of high efficiency (around 28-55 days) and phases of decreased efficiency (approaching 127 days). These fluctuations may be associated with changes in operational strategies, seasonality, market conditions, or supply chain dynamics. Continuous monitoring of the underlying components—inventory turnover, receivables, and payables—is essential to understanding the drivers behind these cyclical shifts and assessing their impact on the company's liquidity and working capital management.