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.
Peer comparison
Jun 30, 2024