Fox Corp Class B (FOX)

Financial leverage ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total assets	US$ in thousands	21,972,000	21,866,000	22,185,000	22,926,000	21,750,000
Total stockholders’ equity	US$ in thousands	10,714,000	10,378,000	11,339,000	11,123,000	10,094,000
Financial leverage ratio		2.05	2.11	1.96	2.06	2.15

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,972,000K ÷ $10,714,000K
= 2.05

Fox Corp Class B's financial leverage ratio has fluctuated over the past five years, ranging from 1.96 to 2.15. As of June 30, 2024, the financial leverage ratio stands at 2.05. This indicates that the company relies on a moderate level of debt to finance its operations and growth. A ratio above 1 suggests that the company has more debt than equity in its capital structure.

A decreasing trend in the financial leverage ratio from 2.15 in 2020 to 2.05 in 2024 may indicate improved financial stability and reduced dependence on debt for funding. However, it is essential to assess the overall financial health of the company along with other financial ratios to fully understand its leverage position.

It's worth noting that while a moderate level of leverage can amplify returns for shareholders during prosperous times, it may also increase financial risks during economic downturns or periods of financial instability. The company's management should carefully monitor and manage its debt levels to ensure a healthy balance between debt and equity financing.