Fox Corp Class A (FOXA)

Cash conversion cycle

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Days of inventory on hand (DOH)	days	—	25.14	19.62	30.46	31.92
Days of sales outstanding (DSO)	days	55.35	61.72	53.28	55.58	57.37
Number of days of payables	days	—	27.43	28.37	26.41	28.85
Cash conversion cycle	days	55.35	59.43	44.54	59.63	60.43

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 55.35 – —
= 55.35

The cash conversion cycle (CCC) for Fox Corp Class A exhibits variability over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the CCC stood at approximately 60.43 days, indicating that it took just over two months for the company to convert its investments in inventory and receivables into cash, after accounting for its payables. Over the subsequent year, the CCC slightly decreased to 59.63 days as of June 30, 2022, suggesting a marginal improvement in the company's efficiency in managing working capital.

A notable decline occurred by June 30, 2023, when the CCC dropped to approximately 44.54 days. This substantial reduction indicates that the company shortened its cycle, enhancing its cash flow efficiency by approximately 15.09 days compared to the previous year. This improvement could be attributable to faster collection of receivables, improved inventory turnover, or extended payables, though the specific drivers are not detailed here.

However, the trend reverses in the subsequent periods. By June 30, 2024, the CCC increased again to approximately 59.43 days, nearly returning to the 2021 levels, indicating a slowdown or inefficiency in cash conversion processes. The cycle slightly contracted again to 55.35 days by June 30, 2025, but it remained above the 2023 low, reflecting ongoing fluctuations.

Overall, the cash conversion cycle demonstrates periods of both improvement and deterioration. The sharp reduction in 2023 suggests an operational or strategic change that temporarily enhanced liquidity management, but the subsequent increase indicates a partial reversal of these efficiencies. The cyclical nature of this metric underscores the importance of internal and external factors influencing receivable collection, inventory management, and payment policies, affecting the company's liquidity and working capital management strategies over time.