Fox Corp Class B (FOX)

Quick ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash	US$ in thousands	4,319,000	4,272,000	5,200,000	5,886,000	4,645,000
Short-term investments	US$ in thousands	797,000	884,000	435,000	788,000	531,000
Receivables	US$ in thousands	2,364,000	2,177,000	2,128,000	2,029,000	1,888,000
Total current liabilities	US$ in thousands	2,952,000	3,763,000	2,296,000	3,002,000	1,906,000
Quick ratio		2.53	1.95	3.38	2.90	3.71

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,319,000K + $797,000K + $2,364,000K) ÷ $2,952,000K
= 2.53

The quick ratio of Fox Corp Class B has exhibited fluctuations over the past five years. As of June 30, 2024, the quick ratio stands at 2.53, representing a significant increase from the previous year's ratio of 1.95. This implies that the company's ability to meet its short-term obligations with its most liquid assets has improved notably in the current year.

Comparing the current ratio to the ratios of the preceding years, we observe a downward trend from 3.71 in 2020 to 2.53 in 2024, with intermittent fluctuations in between. Despite the volatility, the quick ratio has generally remained above 1, indicating that Fox Corp Class B has maintained a healthy level of liquidity to cover its short-term liabilities throughout the period under review.

The company's quick ratio exceeding 1 indicates that its current assets, excluding inventory, are more than sufficient to cover its current liabilities. This suggests a strong financial position and the ability to meet its short-term obligations without relying heavily on selling inventory, which may be subject to fluctuations in market demand or pricing.

Overall, the increasing trend in Fox Corp Class B's quick ratio demonstrates an enhanced liquidity position in the most recent year, indicating improved financial health and a stronger capacity to fulfill its short-term financial commitments.