Fox Corp Class A (FOXA)

The liquidity ratios for Fox Corp Class A over the specified periods reflect fluctuations in the company's ability to meet its short-term obligations.

The current ratio, which measures the company's capacity to cover its current liabilities with its current assets, exhibits an overall upward trend from 2.91 on June 30, 2021, to a peak of 3.61 in 2022. However, a notable decline occurs in 2023, with the ratio dropping to 1.93, indicating a reduced margin of safety in covering short-term liabilities. Subsequently, the ratio recovers to 2.54 in 2024 and stabilizes at 2.91 in 2025, approaching levels observed in 2021.

The quick ratio, which excludes inventories to focus on more liquid assets, follows a similar pattern. It increases from 2.64 in 2021 to 3.19 in 2022, before decreasing sharply to 1.71 in 2023. This decline suggests a reduction in highly liquid assets relative to short-term liabilities during that period. Post-2023, the quick ratio improves to 2.26 in 2024 and reaches 2.70 in 2025, indicating enhanced liquidity positions.

The cash ratio, reflecting the most liquid segment of current assets, trends upward from 1.96 in 2021 to 2.26 in 2022. A significant decrease occurs in 2023 to 1.14, implying a temporary dip in cash holdings relative to current liabilities. However, the ratio rises again to 1.46 in 2024 and further to 1.85 in 2025, illustrating a recovery in cash reserves and liquidity strength.

Overall, the analysis indicates that Fox Corp Class A experienced a period of diminished liquidity in 2023, particularly evident in the quick and cash ratios, which may align with strategic or operational changes during that time. Nonetheless, the subsequent increases suggest efforts toward restoring liquidity adequacy, with ratios approaching or exceeding prior levels by 2024 and 2025.

---

Additional liquidity measure

The analysis of Fox Corp Class A's cash conversion cycle (CCC) over the specified period reveals notable fluctuations and an overall trend towards shorter cycles, followed by a subsequent increase.

As of June 30, 2021, the CCC was approximately 60.43 days, indicating the number of days it took for the company to convert its investments in inventory and other resources into cash flows from sales, after considering the time required to pay suppliers. This figure slightly decreased to 59.63 days by June 30, 2022, reflecting a marginal improvement in the company's efficiency in converting its operations into cash.

The most significant change occurred by June 30, 2023, when the CCC dropped to approximately 44.54 days. This substantial reduction suggests an enhancement in operational or financial management, potentially through shorter inventory turnover periods, more rapid receivables collection, or improved payables management, thereby reducing the overall cycle time.

Subsequently, the CCC increased again to roughly 59.43 days by June 30, 2024, indicating a reversal of the previous efficiencies gained, and suggesting either elongation in receivables, inventories, or payables management. A moderate decrease was observed afterward, with the CCC at around 55.35 days as of June 30, 2025, though it did not return to the earlier 2021-2022 levels.

Overall, the timeline demonstrates a notable reduction in the cash conversion cycle in 2023, reflective of improved operational efficiencies, followed by a partial reversion towards longer cycles in subsequent years. These fluctuations underscore the dynamic nature of Fox Corp’s working capital management and operational pace within this period.