Fox Corp Class A (FOXA)

Based on the liquidity ratios of Fox Corp Class A over the past five years, we observe the following trends:

1. Current Ratio:
The current ratio measures the company's ability to meet short-term obligations with its current assets. Fox Corp Class A's current ratio has fluctuated over the five-year period, ranging from a low of 1.93 in 2023 to a high of 3.93 in 2020. A current ratio above 1 indicates that the company has more current assets than current liabilities, providing a cushion for short-term financial needs. The current ratio for 2024 stands at 2.54, indicating a healthy liquidity position.

2. Quick Ratio:
The quick ratio, also known as the acid-test ratio, is a more stringent measure of liquidity as it excludes inventory from current assets. Fox Corp Class A's quick ratio has shown a similar trend to the current ratio, with fluctuations over the years. The quick ratio for 2024 is 2.53, suggesting that the company has an adequate level of highly liquid assets to cover its short-term liabilities.

3. Cash Ratio:
The cash ratio is the most conservative liquidity ratio, focusing solely on the availability of cash to cover current liabilities. Fox Corp Class A's cash ratio has also varied over the years, with a range from 1.37 in 2023 to 2.72 in 2020. The cash ratio for 2024 is 1.73, indicating that the company has a sufficient level of cash to meet its immediate obligations.

In summary, Fox Corp Class A has maintained a relatively stable liquidity position over the past five years, with current, quick, and cash ratios generally above industry benchmarks. These ratios suggest that the company has the ability to meet its short-term financial obligations and indicates a sound financial health in terms of liquidity.

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Additional liquidity measure

The cash conversion cycle for Fox Corp Class A has varied over the past five years. In the most recent fiscal year ending on June 30, 2024, the company's cash conversion cycle was 155.84 days, showing an increase from the previous year. This suggests that it took Fox Corp Class A longer to convert its investments in inventory and accounts receivable into cash during the latest fiscal period.

Comparing this to the trend over the past five years, we observe fluctuations in the cash conversion cycle. In fiscal year 2023, the cycle was relatively shorter at 130.37 days, which may indicate a more efficient management of working capital during that period. However, in fiscal years 2021 and 2020, the cash conversion cycle was notably higher at 181.59 days and 183.54 days, respectively, reflecting potential challenges in liquidity management or delays in converting assets into cash during those years.

Overall, fluctuations in the cash conversion cycle of Fox Corp Class A indicate variations in the company's efficiency in managing cash flow from operations, inventory, and accounts receivable. It is crucial for the company to continue monitoring and optimizing its working capital management to enhance liquidity and operational efficiency.