Fox Corp Class B (FOX)

Interest coverage

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	1,268,000	2,509,000	2,085,000	2,071,000	3,313,000
Interest expense	US$ in thousands	227,000	405,000	349,000	377,000	395,000
Interest coverage		5.59	6.20	5.97	5.49	8.39

June 30, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,268,000K ÷ $227,000K
= 5.59

The interest coverage ratio for Fox Corp Class B demonstrates a fluctuating trend over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio stood at 8.39, indicating the company's ability to generate approximately 8.39 times its interest expenses with its earnings, reflecting a strong coverage position. However, by June 30, 2022, this ratio declined to 5.49, suggesting a reduction in earnings relative to interest obligations, though the coverage remained above a generally prudent threshold of 1.5 to 2.0 times.

Following this decline, a modest recovery is observed with the ratio increasing to 5.97 as of June 30, 2023, indicating an improvement in the company's capacity to meet its interest payments from earnings. The forecasted figures for subsequent years show a slight upward movement, with the ratio reaching 6.20 by June 30, 2024, and stabilizing around 5.59 in June 2025. These projections suggest that Fox Corp is expected to maintain a comfortable interest coverage position over the near term, although the ratio remains below its 2021 peak.

Overall, the trend indicates that while the company's interest coverage capacity experienced a notable decline after 2021, it has since stabilized and modestly improved, maintaining a generally adequate margin for meeting interest expenses. This pattern underscores the importance of ongoing earnings stability and prudent financial management to sustain interest coverage at healthy levels.