Fox Corp Class A (FOXA)

Short-term

Turnover ratios

The activity ratios of Fox Corp Class A over the analyzed period demonstrate evolving operational efficiency and asset management.

Inventory Turnover: The inventory turnover ratio indicates the company's ability to sell and replace its inventory within a period. Starting at 5.91 times as of September 30, 2020, the ratio exhibited a marked upward trend, peaking at 23.39 times during March 2025. Notable increases occurred in the subsequent quarters, with ratios reaching 11.19 in March 2021, maintaining elevated levels through 2022, and escalating sharply to above 20 in 2024 and 2025. This pattern suggests significant improvements in inventory management, possibly reflective of more efficient inventory turnover, brisk sales, or strategic inventory reductions.

Receivables Turnover: The receivables turnover ratio demonstrates the company's efficacy in collecting outstanding customer balances. The ratio experienced fluctuations from an initial 6.19 as of September 2020, declining to a low of approximately 4.35 in December 2024, before rising again to 6.59 in June 2025. The periods of decline reflect a slowdown in collections or an extension of credit terms, whereas the recent increase indicates improved receivables collection efficiency.

Payables Turnover: This ratio measures how quickly the company pays its suppliers. The data shows high variability, starting at 14.33 in September 2020, declining significantly to 4.68 by December 2020, then generally trending upward through 2022 and 2023, reaching above 13, notably 13.88 in June 2024. The decline toward the end of 2024 and into 2025 indicates a slowdown in payment frequency, possibly due to negotiated credit terms or strategic cash management. The absence of data for December 2023 and early 2024 suggests potential data unavailability; nonetheless, the recent trends imply a cautious approach to accounts payable.

Working Capital Turnover: This ratio reveals how efficiently the company utilizes its working capital to generate sales. The ratio has exhibited a gradual increase from approximately 1.91 in September 2020 to over 4.49 in March 2023, thereafter stabilizing between 2.81 and 4.27. The rise in this metric indicates more effective use of working capital to support sales, although fluctuations in later periods may reflect operational adjustments or variations in current asset and liability levels.

Overall Assessment: The activity ratios collectively suggest that Fox Corp Class A has enhanced its operational efficiency over time. The substantial increase in inventory turnover points to improved inventory management and sales performance. Fluctuations in receivables and payables turnover ratios reflect dynamic credit and payment strategies, possibly aimed at optimizing liquidity and cash flows. The rising working capital turnover underscores more effective deployment of short-term assets in generating sales. These trends are indicative of strategic operational adjustments, with the company progressively optimizing its asset management practices across the analyzed periods.

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Average number of days

The activity ratios for Fox Corp Class A, particularly focusing on days of inventory on hand (DOH), days of sales outstanding (DSO), and days of payables, reveal several trends over the period from September 2020 through June 2025.

Days of Inventory on Hand (DOH):
The company experienced significant fluctuations in inventory management efficiency. During the initial period in September 2020, DOH was approximately 61.80 days. A notable improvement was observed by March 2021, when the DOH decreased markedly to around 32.62 days, indicating more rapid inventory turnover. The period from June 2021 through March 2022 maintained relatively stable DOH levels in the low 30s, showcasing efficient inventory management. However, subsequent periods experienced an upward trend, with DOH reaching as high as approximately 50.18 days in December 2022, suggesting slower inventory turnover or increased inventory holdings. Interestingly, a sharp decline occurred by March 2023, with DOH dropping to just 17.72 days, representing a significant improvement in inventory efficiency. This was followed by slight fluctuations, with DOH rising again to around 37.28 days by December 2024, before declining to 15.61 days in March 2025, indicating a substantial contraction in inventory levels relative to sales.

Days of Sales Outstanding (DSO):
The DSO patterns demonstrate periods of extended receivable collection times. From September 2020, the average receivables period was roughly 59 days, rising sharply to approximately 80 days in December 2020. Through 2021 and 2022, DSO exhibited variability, with peaks around 79.28 days (December 2021) and 76.76 days (December 2022), indicating extended collection cycles during these periods. The trend suggests a cautious management of receivables or potentially challenging collection environments. From March 2023 onward, DSO decreased to below 70 days and further declined to around 55 days by June 2025, reflecting improved receivables collection efficiency over time.

Number of Days of Payables:
The company's payables period exhibits variability and some inconsistency. Starting from approximately 25.48 days in September 2020, the average extended to over 78 days in December 2020. Afterward, the payable days generally ranged between approximately 26 to 37 days, indicating the company stretched its payables periodically, possibly leveraging supplier terms to optimize cash flow. A noticeable increase was seen in June 2025, where payables extended to about 44.59 days, which may suggest a strategic effort to defer payments or changes in payment terms. Some data points for late 2024 are missing, but overall, the trend points toward periods of increased leverage in managing payables.

Overall Summary:
The activity ratios depict a company that has experienced periods of improved operational efficiency—particularly noticeable with sharp reductions in inventory days and receivables days in certain quarters—while also managing its payables tactically to optimize cash flow. The fluctuations across these metrics highlight periods of operational adjustments, strategic inventory or receivable management, and negotiations with suppliers. As of the latest data, Fox Corp Class A shows signs of enhanced efficiency in inventory and receivables management, with some periods indicating increased creditor leverage. These patterns collectively suggest ongoing efforts towards operational improvements and cash flow optimization.

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Long-term

The analysis of Fox Corp Class A's long-term activity ratios reveals notable trends over the provided periods. The Fixed Asset Turnover ratio exhibited fluctuations, initially declining from 8.03 on September 30, 2020, to a low of 7.56 on June 30, 2021, before increasing steadily to reach a peak of 8.90 on March 31, 2023. This indicates a period of initial inefficiency or increased investment in fixed assets followed by improved utilization and operational efficiency, culminating in higher revenue generation per dollar of fixed assets. However, a sharp decline to 5.71 on September 30, 2023, reflects a significant decrease in fixed asset productivity, possibly due to asset impairments, reduced asset utilization, or strategic asset expansions that have yet to generate proportional revenue.

The Total Asset Turnover ratio demonstrated a consistent upward trend throughout the period, rising from 0.55 on September 30, 2020, to 0.70 by June 30, 2025. This suggests an overall improvement in the company's efficiency in utilizing its total assets to generate sales. The increase indicates better asset management, optimized operational processes, or a strategic shift toward revenue-enhancing activities involving the entire asset base.

In summary, Fox Corp's long-term activity ratios point to an initial period of adjustment with fluctuating fixed asset efficiency, followed by a sustained improvement in the overall asset utilization. The recent decline in the Fixed Asset Turnover ratio warrants further investigation into asset-specific issues or strategic changes, whereas the steady growth in Total Asset Turnover signals overall strengthening in asset productivity and operational effectiveness.