Fox Corp Class A (FOXA)

Cash conversion cycle

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Days of inventory on hand (DOH)	days	94.18	77.09	126.46	124.22	127.53
Days of sales outstanding (DSO)	days	61.65	53.28	55.58	57.37	56.01
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	155.84	130.37	182.05	181.59	183.54

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.18 + 61.65 – —
= 155.84

The cash conversion cycle for Fox Corp Class A has fluctuated over the past five years. In the latest fiscal year ending on June 30, 2024, the company's cash conversion cycle increased to 155.84 days compared to the previous year, signaling a need for a longer period to turn its investments in inventory and receivables back into cash.

On the positive side, the cash conversion cycle decreased significantly in the prior fiscal year ending on June 30, 2023, to 130.37 days from 182.05 days in the fiscal year ending June 30, 2022. This indicates that the company was able to manage its working capital more efficiently during that period.

Looking further back, the cash conversion cycle was relatively consistent in the fiscal years 2021 and 2020, ranging between 181.59 and 183.54 days. This stability suggests that the company maintained a steady balance between its payables, receivables, and inventory turnover during those years.

Overall, it is essential for Fox Corp to monitor and manage its cash conversion cycle effectively to optimize its working capital management and ensure the company's financial health and operational efficiency.