Fox Corp Class A (FOXA)

Short-term

Turnover ratios

The analysis of Fox Corp Class A activity ratios from June 30, 2021, to June 30, 2025, reveals several notable trends:

Inventory Turnover:
The inventory turnover ratio experienced fluctuations over the period. It increased from 11.44 times in 2021 to 11.98 times in 2022, indicating a slight improvement in inventory management efficiency. A significant rise occurred in 2023, reaching 18.60 times, suggesting a substantial enhancement in the company's ability to sell and replace its inventory quickly. However, this ratio declined to 14.52 times in 2024 before dropping sharply to zero in 2025, which may indicate an accounting anomaly, change in inventory management practices, or data discontinuity.

Receivables Turnover:
The receivables turnover ratio showed a gradual upward trend from 6.36 times in 2021 to 6.85 times in 2023, demonstrating improved collection efficiency. In 2024, it decreased slightly to 5.91 times but recovered in 2025 to 6.59 times, reflecting relatively stable receivables management over the period.

Payables Turnover:
The payables turnover ratio increased from 12.65 times in 2021 to 13.82 times in 2022, indicating the company was paying its suppliers more frequently within the period. It decreased marginally to 12.87 times in 2023, then increased again to 13.31 times in 2024. Data for 2025 is unavailable, limiting further analysis for that year. Overall, the stability in this ratio suggests consistent payables management practices.

Working Capital Turnover:
This ratio rose significantly from 2.25 in 2021 to 4.27 in 2023, indicating improved efficiency in utilizing working capital to generate sales. Subsequently, it declined to 3.07 in 2024, and further slightly to 2.95 in 2025, approaching earlier levels but still reflecting periods of more efficient working capital use.

Summary:
Overall, the activity ratios suggest that Fox Corp Class A demonstrated efficiency improvements in inventory management, especially in 2023, followed by a decline in subsequent years. Receivables collection improved gradually, maintaining relatively stable performance. Payables management remained consistent, with increased turnover rates indicating prompt payments to suppliers. Working capital efficiency improved notably in 2023 before declining slightly towards 2025, reflecting fluctuations in operational efficiency. The significant change in inventory turnover in 2025, indicated by a zero value, warrants further investigation to understand underlying causes.

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Average number of days

The analysis of Fox Corp Class A's activity ratios over the period from June 30, 2021, to June 30, 2024, reveals the following trends and insights:

Days of Inventory on Hand (DOH):
The DOH metric indicates the number of days the company's inventory remains unsold before being converted into sales. Between June 2021 and June 2023, there was a notable decrease in inventory holding periods, declining from 31.92 days to 19.62 days. This reduction suggests improved inventory management efficiency, potentially reflecting better demand forecasting or supply chain optimization. However, between June 2023 and June 2024, the DOH increased slightly to 25.14 days, indicating a possible accumulation of inventory, which may warrant further examination to assess whether this reflects changes in product mix, inventory strategy, or external market factors. Data for June 2025 is unavailable.

Days of Sales Outstanding (DSO):
The DSO ratio, representing the average number of days to collect receivables, shows a decreasing trend from 57.37 days in June 2021 to 53.28 days in June 2023. This suggests improved collection efficiency and potentially better credit policies or customer payment behaviors. Conversely, the DSO increased to 61.72 days in June 2024, indicating a delay in receivables collection. This shift could point to loosened credit terms, challenges in receivables collection, or changes in customer creditworthiness. The DSO for June 2025 is slightly lower at 55.35 days, but data remains incomplete.

Number of Days of Payables:
The period the company takes to settle its accounts payable remained relatively stable, declining marginally from 28.85 days in June 2021 to 28.37 days in June 2023. The consistency suggests a stable approach to managing payables, aligned with industry standards or internal payment policies. In June 2024, the payables period decreased slightly to 27.43 days. The absence of data for June 2025 precludes further assessment.

Overall Evaluation:
The activity ratios indicate that Fox Corp Class A has generally maintained effective inventory and payable management. The declining DOH and stable payables periods reflect efficient working capital utilization. However, the increase in DSO observed in 2024 warrants attention as it could impact liquidity if receivables collection continues to slow. Continuous monitoring and comparative analysis against industry benchmarks could further elucidate the company's operational efficiency and financial health.

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Long-term

The analysis of Fox Corp Class A's long-term activity ratios reveals notable trends over the fiscal periods from June 30, 2021, to June 30, 2023, with projections extending to June 30, 2025.

The Fixed Asset Turnover ratio demonstrates a consistent upward movement, increasing from 7.56 in 2021 to 8.31 in 2022, and further to 8.73 in 2023. This trajectory indicates an improvement in the efficiency with which the company's fixed assets generate revenue. A rising fixed asset turnover ratio suggests better utilization of fixed assets, possibly attributable to enhanced operational efficiency or strategic asset management.

Similarly, the Total Asset Turnover ratio shows a positive trend, ascending from 0.56 in 2021 to 0.63 in 2022, and reaching 0.68 in 2023. The projected figures for 2024 and 2025 suggest a continued, albeit more modest, increase to 0.64 and 0.70 respectively. This trend signifies an overall enhancement in the company's ability to generate sales from its total assets, reflecting improved operational efficiency or a shift in asset utilization strategies.

The simultaneous upward movements in both ratios over the analyzed period indicate a consistent focus on optimizing asset use to boost revenue generation. These improvements may be driven by strategic investments, asset disposals, or efficiency initiatives within the company. The projections for 2024 and 2025 suggest expectations of sustained or further improved asset utilization, contributing positively to the company's long-term efficiency profile.

Overall, Fox Corp Class A's long-term activity ratios portray a pattern of increasing operational efficiency concerning asset utilization, which is favorable from an investment and management perspective.