Fox Corp Class B (FOX)

The analysis of Fox Corp Class B's liquidity ratios over the period from September 2020 to June 2025 indicates a generally prudent liquidity position, with some fluctuations reflecting operational and financial strategic shifts.

Current Ratio:
The current ratio, measuring the company's ability to meet short-term obligations with its current assets, was notably high at 4.21 as of September 2020. It declined steadily through 2021, reaching a low of 1.75 in March 2023. This downward trend suggests a reduction in current assets relative to current liabilities, potentially reflecting operational adjustments or capital management strategies. However, from March 2023 onwards, the current ratio exhibited an upward trend, reaching approximately 2.91 by June 2025, indicating improved short-term liquidity and a stronger position to fulfill liabilities as they come due.

Quick Ratio:
The quick ratio, which excludes less liquid assets such as inventories, followed a similar pattern. It started at 3.51 in September 2020, declined through 2021, and reached a low point of around 1.56 in March 2023. Post-March 2023, the quick ratio improved significantly, ending at approximately 2.70 in June 2025. This recovery underscores enhanced liquidity in terms of liquid assets readily available to cover current liabilities.

Cash Ratio:
The cash ratio, reflecting the most conservative measure of liquidity by considering only cash and cash equivalents, was 2.52 in September 2020. It demonstrated some volatility, declining to 0.94 in March 2023, which suggests periods where cash holdings relative to current liabilities were relatively lower. Nonetheless, from this trough, the cash ratio recovered, reaching 1.85 by June 2025. This indicates a substantial improvement in the company's immediate liquidity position and its capacity to cover short-term obligations with cash reserves.

Overall Observation:
Across all measures, the company's liquidity position experienced a decline from high levels in 2020, reaching a trough in early 2023, followed by a recovery phase through 2023 and into 2024 and 2025. The current ratio consistently remained above the critical threshold of 1.0, reflecting adequate coverage of liabilities, with the ratios often exceeding 2.0, which is generally considered healthy. The quick and cash ratios corroborate this trend, highlighting periods of improved liquidity alignment, particularly in the more recent years.

This analysis indicates that Fox Corp Class B has managed to restore its liquidity ratios following a period of decline, maintaining prudent liquidity levels capable of supporting its short-term financial commitments as of the most recent reporting periods.

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See also:

Fox Corp Class B Liquidity Ratios (Quarterly Data)

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Additional liquidity measure

The analysis of Fox Corp Class B's cash conversion cycle (CCC) over the specified period reveals significant fluctuations reflecting changes in operational efficiency and working capital management.

From September 30, 2020, to December 31, 2020, the CCC decreased markedly from approximately 95.33 days to 49.93 days, indicating improved cash flow management, potentially driven by faster receivables collection, inventory management, or extended supplier payables. This trend continued into March 31, 2021, with a slight increase to 66.04 days, before decreasing again to 60.49 days at June 30, 2021, suggesting periods of operational optimization.

During 2021, the CCC experienced cyclical variations, peaking again at 94.41 days at December 31, 2021, and then decreasing to 62.48 days by March 31, 2022, and further to 59.63 days at June 30, 2022. This pattern indicates periods of both operational tightening and relaxation, possibly influenced by seasonal factors, strategic shifts in receivables and payables policies, or changes in inventory turnover.

In 2022, the CCC showed a rising trend again, reaching 89.80 days at December 31, with a subsequent sharp reduction to 54.39 days by March 31, 2023, and further declining to 44.54 days at June 30, 2023. These reductions may suggest a significant efficiency improvement, streamlining receivables collection, inventory turnover, or extending supplier payment terms.

However, the cycle increased again to 69.78 days at September 30, 2022, and further to 77.19 days at December 31, 2022. The first quarter of 2023 saw a decline to 54.39 days, followed by a slight rise in the subsequent quarters, reaching 72.58 days at September 30, 2024. The most notable change occurs in December 2024, where the CCC sharply increases to 127.47 days, indicating a potential deterioration in cash flow management, possibly due to extended receivables, increased inventory holdings, or delayed payables.

Looking ahead, projections for March 31, 2025, suggest a reduction to 89.31 days, and a significant decrease to 28.77 days at June 30, 2025, imply a strategic improvement in working capital efficiency.

Overall, the cash conversion cycle has demonstrated considerable variability over the analyzed period, reflecting dynamic operational strategies, seasonal influences, and changing market conditions. The recent trends suggest efforts to optimize working capital, with notable improvements in certain quarters, but periods of elongation indicating risks associated with operational inefficiencies or external factors.