Fox Corp Class B (FOX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 79.83% | 100.00% | 100.00% | 100.00% | 100.00% | 86.49% | 67.62% | 44.10% | 32.27% | 32.73% | 33.80% | 32.12% | 32.16% | 32.12% | 33.08% | 34.42% | 36.49% | 38.38% | 38.70% | 39.23% |
| Operating profit margin | 19.81% | 19.03% | 20.37% | 18.57% | 17.73% | 17.49% | 16.27% | 17.04% | 18.53% | 17.90% | 16.99% | 15.69% | 15.79% | 16.64% | 19.40% | 20.03% | 21.42% | 22.35% | 22.30% | 22.61% |
| Pretax margin | 18.78% | 15.85% | 20.03% | 18.53% | 15.05% | 15.50% | 7.87% | 9.73% | 11.64% | 11.25% | 14.83% | 11.24% | 12.12% | 11.60% | 14.66% | 18.06% | 22.60% | 22.20% | 16.81% | 18.16% |
| Net profit margin | 13.88% | 11.58% | 14.39% | 13.40% | 10.74% | 11.19% | 5.75% | 6.97% | 8.31% | 7.84% | 10.55% | 7.85% | 8.62% | 8.33% | 10.57% | 13.18% | 16.66% | 16.23% | 12.08% | 13.00% |
The analysis of Fox Corp Class B's profitability ratios over the examined period reveals several notable trends and developments.
Gross Profit Margin:
Initially, the gross profit margin exhibited a downward trajectory from approximately 39.23% in September 2020 to a low of around 32.12% in March 2022. This decline suggests increased cost pressures or competitive pricing strategies negatively impacting gross profitability. From mid-2022 onwards, the gross margin remained relatively stable around the low 30% range, with slight fluctuations. A significant shift occurs starting in September 2023, where the gross margin exhibits a marked increase, reaching 44.10%, followed by a continuous and exponential rise to surpass 100% in subsequent quarters, culminating at 100% in June 2024 and maintaining this level through September 2024 and beyond. This dramatic increase indicates a fundamental change in revenue recognition or a substantial reduction in cost of goods sold, possibly reflecting extraordinary accounting adjustments or revenue recognition policies.
Operating Profit Margin:
The operating profit margin demonstrates a general declining trend from approximately 22.61% in September 2020 to around 15.69% in September 2022. This decline indicates that operational efficiencies may have diminished, or operating costs increased relative to revenue. From late 2022 through early 2024, margins stabilize around 17-20%, showing moderate variability. Interestingly, starting in September 2024, the operating margin improves substantially, reaching approximately 20.37%, before fluctuating slightly but remaining relatively strong compared to the earlier lower points. This suggests some operational improvements or cost controls implemented during this period.
Pre-Tax Margin:
The pre-tax margin shows variability but generally has been on the decline from 18.16% in September 2020 to a low of 7.87% in December 2023. However, an uptick is observed starting in March 2024, with the margin climbing above 15%, peaking at around 20.03% in December 2024. The fluctuations reflect periods of varying pre-tax profitability, likely influenced by nondeductible expenses, tax strategies, or nonrecurring items.
Net Profit Margin:
The net profit margin follows a pattern similar to the pre-tax margin, declining from 13.00% in September 2020 to approximately 5.75% in December 2023. During the subsequent quarters, there is a significant recovery, with margins increasing to over 14% by the end of 2024, indicating improved bottom-line profitability. The trajectory suggests that despite earlier challenges in profitability, recent periods have experienced a resurgence in net profitability, possibly as a result of operational efficiencies, improved revenue quality, or favorable tax impacts.
Summary:
Overall, Fox Corp Class B experienced a period of margin compression from late 2020 through 2022, driven likely by increased costs, operational challenges, or market conditions. The considerable surge in gross profit margin beginning in late 2023 and continuing into 2024 signifies a notable shift, potentially due to accounting adjustments or strategic initiatives. Operating, pre-tax, and net profit margins exhibit signs of stabilization or recovery in the most recent periods, indicating improved profitability dynamics. Understanding the underlying causes of the extraordinary leap in gross margins and the operational factors driving the recent recovery would require further insight into management strategies and accounting policies.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.92% | 13.11% | 13.43% | 11.81% | 11.28% | 11.21% | 10.37% | 11.75% | 12.64% | 11.92% | 10.49% | 9.88% | 9.95% | 10.46% | 11.52% | 11.45% | 12.06% | 12.14% | 12.41% | 12.41% |
| Return on assets (ROA) | 9.76% | 7.98% | 9.49% | 8.52% | 6.83% | 7.17% | 3.66% | 4.81% | 5.67% | 5.22% | 6.52% | 4.95% | 5.43% | 5.23% | 6.28% | 7.53% | 9.38% | 8.81% | 6.72% | 7.14% |
| Return on total capital | 23.83% | 25.70% | 30.05% | 27.24% | 23.42% | 24.20% | 14.91% | 17.38% | 20.09% | 19.95% | 21.35% | 16.96% | 18.26% | 17.75% | 21.14% | 24.36% | 29.79% | 28.49% | 23.04% | 24.29% |
| Return on equity (ROE) | 18.92% | 16.18% | 19.01% | 17.04% | 14.01% | 14.75% | 8.16% | 10.03% | 11.94% | 11.49% | 12.98% | 9.63% | 10.63% | 10.29% | 12.74% | 15.27% | 19.33% | 18.22% | 14.01% | 14.88% |
The analysis of Fox Corp Class B's profitability ratios over the specified periods reveals several noteworthy trends and insights.
Operating Return on Assets (Operating ROA):
The Operating ROA remained relatively stable at approximately 12.41% through the end of 2020 and the first quarter of 2021, with a slight decline observed in subsequent periods, reaching lows around 9.88% in September 2022. Thereafter, a gradual recovery is evident, culminating in a notable increase to 13.43% by December 2024. This pattern indicates initial stability followed by a period of declining operational efficiency, then a resurgence suggesting improved profitability relative to operating assets.
Return on Assets (ROA):
The ROA experienced fluctuations, beginning at 7.14% in September 2020, with a dip during mid-2022—reaching a low of 3.66% in December 2023—before rebounding to around 9.76% in mid-2025. This volatility suggests periods where net profitability relative to total assets was challenged, possibly due to increased expenses, operational issues, or market conditions, followed by periods of recovery.
Return on Total Capital:
This ratio exhibits variability aligned with overall profitability trends, with a high of approximately 30.05% in December 2024 and lower levels around 14.91% at the end of 2023. The fluctuations indicate shifting efficiencies in generating returns on invested capital, reflecting operational and financial management dynamics.
Return on Equity (ROE):
The ROE shows significant variability, with an initial decline from 14.88% in September 2020 to a low of 8.16% in December 2023, before recovering to approximately 18.92% by June 2025. These variations reflect changes in net income relative to shareholders’ equity, influenced by profitability, leverage, and operational strategies.
Overall, Fox Corp's profitability ratios depict periods of stability interrupted by cycles of decline and subsequent recovery. The observed upward trends in late 2024 and mid-2025 suggest improvements in operational efficiency, asset utilization, and shareholder returns. These dynamics may be attributed to strategic initiatives, market conditions, or macroeconomic factors impacting operational performance during the analyzed timeframe.