Fox Corp Class B (FOX)
Solvency ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.30 | 0.27 | 0.32 | 0.31 | 0.37 |
| Debt-to-capital ratio | 0.38 | 0.36 | 0.39 | 0.39 | 0.44 |
| Debt-to-equity ratio | 0.62 | 0.57 | 0.64 | 0.65 | 0.79 |
| Financial leverage ratio | 2.05 | 2.11 | 1.96 | 2.06 | 2.15 |
Fox Corp Class B's solvency ratios indicate its ability to meet its financial obligations and the level of leverage in its capital structure:
1. Debt-to-assets ratio:
- The trend shows fluctuation over the five-year period, ranging from 0.27 to 0.37.
- Fox Corp's ability to cover its assets with debt improved from 2023 to 2024 but remains relatively stable.
2. Debt-to-capital ratio:
- The ratio slightly increased from 0.36 in 2023 to 0.38 in 2024.
- This ratio measures the proportion of debt in the company's capital structure, showing a gradual increase in debt over the years.
3. Debt-to-equity ratio:
- The ratio fluctuates between 0.57 and 0.79, indicating the proportion of debt to equity in the company's capital structure.
- The trend shows a slight improvement in 2024 compared to 2023, suggesting better debt-to-equity management.
4. Financial leverage ratio:
- The ratio ranges from 1.96 to 2.15, indicating the level of debt relative to the company's equity.
- A higher ratio implies higher financial risk due to increased reliance on debt financing.
Overall, Fox Corp Class B has maintained relatively stable solvency ratios over the past five years, with a slight improvement in its debt-to-equity ratio and debt-to-assets ratio in 2024. The company's financial leverage ratio indicates a moderate level of leverage in its capital structure, which should be monitored to ensure sustainable financial health.
Coverage ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.80 | 5.93 | 5.42 | 8.26 | 4.80 |
The interest coverage ratio for Fox Corp Class B has shown some fluctuations over the past five years. The ratio decreased from 8.26 in June 2021 to 1.80 in June 2024, indicating a significant decline in the company's ability to cover its interest expenses from operating profits. This could raise concerns about the company's financial health and its ability to meet its debt obligations.
It is worth noting that the interest coverage ratio was relatively stable and healthy between June 2020 and June 2022, ranging from 4.80 to 5.42. However, the sharp decline in the ratio in June 2024 suggests a potential decrease in Fox Corp's profitability or an increase in its interest expenses.
Overall, the decreasing trend in the interest coverage ratio for Fox Corp Class B raises questions about the company's ability to generate sufficient earnings to cover its interest payments. Investors and stakeholders may need to closely monitor the company's financial performance and leverage levels to assess its risk profile moving forward.