Fox Corp Class B (FOX)

Debt-to-equity ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	6,598,000	5,961,000	7,206,000	7,202,000	7,946,000
Total stockholders’ equity	US$ in thousands	10,714,000	10,378,000	11,339,000	11,123,000	10,094,000
Debt-to-equity ratio		0.62	0.57	0.64	0.65	0.79

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,598,000K ÷ $10,714,000K
= 0.62

The debt-to-equity ratio of Fox Corp Class B has shown a fluctuating trend over the past five years. As of June 30, 2024, the debt-to-equity ratio stands at 0.62, indicating that the company has $0.62 in debt for every $1 of equity. This ratio has decreased from the previous year, suggesting that Fox Corp Class B has reduced its reliance on debt to finance its operations.

Comparing the current ratio to the ratios from the previous years, we observe a general downward trend from 0.79 in 2020 to the current ratio of 0.62 in 2024. This indicates a positive trend in the company's financial structure, as it signifies a lower level of debt relative to equity over time. A lower debt-to-equity ratio is often viewed favorably by investors and creditors as it indicates a lower level of financial risk and a stronger financial position.

Overall, the decreasing trend in Fox Corp Class B's debt-to-equity ratio over the past five years suggests a successful strategy in managing its capital structure by reducing debt levels and improving its overall financial stability.