Fox Corp Class B (FOX)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 389,000 | 604,000 | 654,000 | 923,000 | 305,000 |
| Total assets | US$ in thousands | 21,972,000 | 21,866,000 | 22,185,000 | 22,926,000 | 21,750,000 |
| Operating ROA | 1.77% | 2.76% | 2.95% | 4.03% | 1.40% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $389,000K ÷ $21,972,000K
= 1.77%
Fox Corp Class B's operating return on assets (ROA) has shown a declining trend over the past five years. As of June 30, 2024, the operating ROA stood at 1.77%, compared to 2.76% in 2023 and 2.95% in 2022. This downward trend is significant as it indicates a decreasing ability of the company to generate profits from its operating assets.
The operating ROA of 1.77% in 2024 suggests that for every dollar of assets employed in operations, the company generated approximately $0.0177 in operating income. This is a decrease from the 4.03% operating ROA in 2021, indicating a substantial drop in profitability efficiency.
The declining trend in operating ROA could be attributed to factors such as increasing operating costs, lower sales revenues, or inefficient asset utilization. It may indicate challenges in maintaining profitability relative to the level of assets employed in the business.
Further analysis of the company's operating performance, cost structure, and asset management practices would be necessary to understand the specific reasons behind the declining operating ROA trend and to identify potential areas for improvement.
Peer comparison
Jun 30, 2024